What You Need To Know About Bank Owned Homes

By Doherty • February 26th, 2011
An example of a real estate owned property in ...

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In 75% to 80% of the instances bank owned properties are some of the finest values in today’s housing industry.  The main reason is because the asset supervisor who is dealing with the properties wants to get it off the books inside two to 4 weeks so they are normally quite motivated to get an offer on it; for that reason they price it at a quite low and practical price.  In a lot of circumstances these folks need to value it low not to just sell it right away, but they want multiple offers.

So here is how it works with a bank owned property and it is the same way with a corporate relocation owned property.  They put the house on the market.  When it goes on the market they have a very, very good idea what is wrong with it.  They get a full blown appraisal so they know what the value is.  They get a BPO by the listing real estate agent with all the repairs that need to be made listed.  Of course the bank may elect to do some or may not elect to do any of them. They base the listing price on how much those repairs are.  They will also know if they do not do repairs what they may get for the home apposed to if they do the repairs what they may get for the home.  So they have a good idea. It is not like a short sale, banks know an awful lot about the subject dwelling.

They put the home on the market and it has a contract on it, it gets turned into the asset supervisor.  Now if there are a number of bids, they are going to come back and do a highest and best.  They are just going to tell everybody there are many offers; they want all the buyers to give their highest and best offer.  Now it does not always mean the bank is going to take the top offer.  They may actually take a lower offer if it is cash, because there is no contingency on financing.  Some banks will take a lower offer; it really depends on the bank.

After they agree upon every little thing, they are going to give you the title company or the attorney who is handling the REO.  They are going to want you to turn in your hand money.  They are going to then email an addendum that is going to pretty much supersede the entire contract.  It is just their typical addendum that is going to be good in all 50 states, and they are going to want you to sign that.  Then you will sign that and turn the hand money in.  Now it could take the bank a day or two to get the paperwork back to your realtor, but they are going to want you to precede with everything.  The beneficial thing about an REO is they are going to have the utilities on for you to do the inspection, apposed to most short sales.

Overall, banks are reasonably easy to work with as long as you understand how they operate.  They are very painless compared to a short sale, not quite as easy as the traditional sale.

There are a lot of great properties in the Tampa real estate market that are worth so much less than they were several years ago. Please take some time to explore our website for Tampa bank owned properties and Tampa short sales.

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