Home Buying in Plymouth>Question Details

Anna, Home Buyer in New Haven, CT

Got approved for a bank owned home....

Asked by Anna, New Haven, CT Tue Oct 21, 2008

We just received a phone call that our offer has been accpeted on a bank owned home. Now what? I am completely clueless about the process and I am not sure if my agent has dealt with many of these properties either. Please help!

Help the community by answering this question:


Congratulations on having your offer accepted. Generally the practice is that the bank will give you a window to have thehome inspected. they are selling the home in the condition that you saw the house. they will not make any repairs to the house. during this window it is advised you have a home inspection. If something comes out of the home isnpection that makes you leary you can walk away from the transaction.

After that period if you accept the home it is yours. the bank will not entertain any other offers while you are doing your inspection. Also, at thsi time the bank will have addendums to the original sales contract. these addendums supersede the origninal contract for your state and need to be signed and returned to the lsiting agent within a certain time frame. that time frame is generally within three bsuiness days of contract acceptance.

the remainder of the process generally is the same as if you were buying a home from someone resale. You would go through the same procedures as you would for financing a home. The only difference si the bank will require a final HUD statement within 48 hours prior to closing. Since they will not be present at the closing they need it in advance so they can sign their portion and verify the numbers are correct on there before you sign.
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0 votes Thank Flag Link Sat Jan 22, 2011
Typically, bank-owned homes do no come with disclosures as to the actual physical condition of the property, and are usually sold "as is" - which means that if you made your offer without inspection contingencies, even after the inspection reveals any issues, you would not be able to back out of the contract.

The home will still have to go through an appraisal. It may, or may not, appraise for the amount that you put your offer in for (if you are financing, that could be an issue; if cash, then you must decide whether you want the property badly enough to pay above what the appraisal comes in at if it appraises lower than what you're offering).

You will have to follow through with all of the stipulations in the offer re: deadlines. If you are having an inspection of the property, then that must be completed. Mortgage contingency dates - if you are financing, the lender must supply you with a commitment letter by the date specified in your offer. If all of the above items have been satisfied by the specified dates, then your closing should also take place on the date specified in your offer.

If there are issues arising from the lender, or even from the seller, which require you to extend the closing date, then make sure that your agent addresses that in a timely manner.
0 votes Thank Flag Link Sat Jan 22, 2011
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