The growing number of foreclosures today have induced many buyers to consider looking for a new home among these bank-owned properties. As they are owned by a bank, they have key differences from other available homes on the market. Here are some important things to remember before you contact the number on the listing:
The agent who answers the phone represents the bank.Â As such, that person will have the bank's interests in mind and not yours.
The bank can ignore offers.Â Even if you match the asking price, the bank may not accept it immediately. Some might require a length of time to pass before they even consider any offers. They may ignore time periods as outlined in their contract even if you or your agent is calling them daily.
The bank markets continuously.Â The home that you've offered on will still be marketed even while the bank is reviewing your offer. They want to get the best deal out of every house so they keep them for sale sometimes even during inspection and financing.
No disclosures.Â Unlike traditional owners, the bank will not disclose any information about the property as they have not occupied it. Be sure to get an inspection and property survey done.
No repairs.Â Typically, the bank does not do repairs on homes, so you will be buying the property as it is. Don't hesitate to walk away if the bank will not make repairs on major damages. A foreclosed home that sits for a long time will have maintenance issues like blocked drain pipes and molds.Â
Large supply of homes.Â The bank has a large number of homes in their inventory. Even more so with the current climate of the economy. Combine that with a limited number of trained employees, and more often than not, buying from a bank takes a really long and arduous time.Â
The bank has the upper hand on any foreclosure transaction. If you are really interested in a foreclosed property, it's best to have a professional real estate agent to represent you and to handle the time-consuming work. They will be very familiar with the process and can take care of any unexpected issue that comes up.