Foreclosure in 45356>Question Details

Vicki Ohlert, Home Buyer in Miami County, OH

What type of loan can be used towards a bank owned property?

Asked by Vicki Ohlert, Miami County, OH Sat Jul 7, 2007

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4
Darin J. Dugenske’s answer
Cash offers are always the best way to handle bank owned properties. The biggest issue with bank owned property is the delay between offer and return and acceptance. In many cases they are taking 30-45 days to respond to offers which is beyond acceptable timeframes. That being said banks are being more open to offers as long as they are strong offers. In order to be a strong buyer the offers need to be clean. Clean means that you are strong buyer with good credit and the offer you write does not have all sorts of contingencies. Using the existing bank to carry the new loan is also helpful. You can also look at short sales opportunities which has a better response time and in many cases can get good deals. We are always there to assist in helping people achieve their goals.
0 votes Thank Flag Link Tue Jul 10, 2007
Most of the time, bank REO properties can be financed. The condiiton of the property will be one of the criticial factors - if it needs extensive repairs, your financial options may be limited but they do exist. Your credit score, the reason you are buying (primary residence or investment), condition of the property, appraised evaluation, the amount of cash down payment and term of loan are all considerations. Talk to your favorite REALTOR® and lender for guide lines. And, don't forget that the current bank/owner may be offering incentives to buyers! If XYZ lender is the seller and you obtain new financing through them, there is surely a $$ nugget hidden somewhere...find the money. Hope you find a real gem piggy backed with a winning financial package!
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0 votes Thank Flag Link Sun Jul 8, 2007
Cash is the best option when buying bank owned properties but conv loans also will work and are becoming more common with the current rising inventory of lender owned properties. FHA loans can be used but the condition of the home is important and FHA usually wants the property to be six months out from the last sale date. Sellers of bank owned homes will usually agree to pay for closing costs and pre paid for buyers if the net sales price to seller is what they need. Buyers are suggested to have home inspections prior to making offer since most bank owned homes are sold "as is". Make sure thru the listing agent that seller will pay to de winterize and have utilities on for inspections.
0 votes Thank Flag Link Sun Jul 8, 2007
The best situation it is no loan at all -- cash deal. However, right now, in light of bank overloaded with foreclosures, you could use any type of loan available taken into consideration that you will be approved with a credit in good standing.
0 votes Thank Flag Link Sun Jul 8, 2007
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