How To Buy A Bank Owned Home
Because bank owned homes are an ideal way to save money, many wonder how to buy bank owned homes. Bank owned homes are foreclosed properties that did not sell at auction. After the auction, homes that don’t sell go on the bank’s books and become the property of the bank. You can then submit a bid if you’re interested in buying an bank owned property.
Things you'll need:
- Funds or a mortgage
- Contact a local bank or a real estate company in your area. Banks generally dedicate a department to handle any bank owned inventory. However, you will find that banks will often direct you to their listing agent. Another option is to log on to your bank’s website. Do a search for bank owned properties. You can normally view their inventory online.
- Find out if the bank has any inspection reports on the property. It’s also a good idea to find out if the bank has agreed to do any repairs on the property.
- Submit a bid. If you’re dealing through an agent, you can submit the bid to the real estate agent. Some banks will allow you to submit a bid directly to the bank through their website. Once you locate a property, select the tab or link that says “Submit a Bid” or something similar.
- Expect to receive a counter offer. The bank’s job is to get as much as possible from the sale. Although not always the case, bidders often receive counter offers. If you do, simply submit another bid and wait for their response.
- Keep in mind that bank owned properties are generally sold as is. If your bid is accepted, you will most likely need to do some repairs.
If you don’t mind buying a home in not-so-perfect condition, a bank owned property is a practical way to buy a home and save money. You normally pay less than if you were buying the home from the owner prior to foreclosure. So, if you’re interested in finding a bank owned home, contact a bank or real estate agency in your area, locate a property and submit a bid. If you receive a counter-offer, simply submit another bid and wait for the bank to accept your offer.