It is much easier to buy a "bank owned" property than a "forclosure". Buying a forclosure means you are going to buy the property before it goes to auction at the courthouse, as a short sale...or at the courthouse action (which is now done online in Lee County). A bank owned property is more like a normal sale, except that you are dealing with a bank instead of a private seller. There is a lot of competition for the bank owned properties if they are a really good deal. Many times they sell for above the listed price, due to multiple offers coming in at the same time and competing for the property..
A short sale is a very tedious process which can take months and leave you in limbo until you find out if the bank will accept your offer or choose not to sell. I have even seen the bank accept an offer and then delay the process only to have the property go to auction and be sold, while still pending. You have no recourse to that and will have to start over again with another property.
Trying to buy a forclosure at auction has it's own set of challenges and you can lose a lot of money if you have not done your homewark with respect to title issues and outstanding debt. You will inherit those with your purchase. It's a good idea to enlist the help of a professional who does this for a living, so that you will not make those mistakes. The same is true for navigating a short sale or a bank owned purchase.
If you would like to consult in person, Carney Properties & Investment Group/Carney Realty & Associates, Inc., is the largest buyer and seller of court auctioned property in SW Florida as well as a full service real estate company. Please visit our wesite, http://www.CarneyProperties.com for more information.
Best of luck and regards,
Carney Realty & Associates, Inc.
Once a home has been foreclosed on it will end up at auction. If that property which is up for auction does not bring enough money to satisfy what the bank wants for it then they keep it by paying the clerk fee of $100.00. It now becomes "bank owned" and is usually turned over to a realtor that will market it on the MLS. Once one of my client puts an offer in on the foreclosed/bank owned property it usually takes anywhere from a day or two to a couple of weeks to get a decision. During that time there might be what is commonly referred to as "highest and best" offers. This means in the case of multiple offers the listing company holding the property for the bank asks each person making offers to make their very best offer one more time. this can take several days to get all that done.
Sometimes people may have gotten to a point being referred to as "under water" and a "short sale" is necessary. This is a "pre-foreclosure" process that the banks will assist the seller in by allowing the home to be sold for less than the amount owed to the bank. The time it takes to buy a short sale is significantly longer because the seller is still involved with the paperwork process and nothing starts until there is an offer on the property. However, the government has made great strides in asking that the banks only be given 10 days once the paperwork has been received in order to make a decision. Then they must have a BPO "buyers price opinion done which is like doing an appraisal or comparable market price analysis. The bank will then either counter the offer from the buyer of the short sale or accept it. Banks have been given additional incentive by now receiving the write off for their loss on the short sale.
If I can help you maneuver the market as your buyer's agent please join many of my satisfied clients by logging onto http://www.swfloridahomebuyer.listingbook.com. You will be able to see the entire Gulfcoast MLS including all foreclosures and short sales being marketed on the MLS.
Happy to help.
Sarah Garrett, Realtor
ALLIANCE REALTTY GROUP
"CHOSEN BEST IN CLIENT SATISFACTION 2006-2009" BY GULFSHORE LIFE MAGAZINE
When banks foreclose, they will list these properties for sale through a realtor in order to get the maximum exposure for the property and to have the realtor assume the responsibility for marketing, maintainance, etc.
So if you're looking for bank-owned properties, engage a realtor to search for suitable properties for you, research the background on these properties to see how much the bank have invested in them, and determine how much the bank will sell these for based on recent comps, etc.
And since banks have the majority of the foreclosures, you will have an easier time finding these properties for sale. through a realtor.
I wouldn't recommend buying a foreclosure at auction because the title or ecrow companies cannot guarantee that they can give you title insurance or the the tile is free and clear. Whereas banks selling foreclosures will deliver free and clear title at close of escrow.
they are easy and quick to get a deal
the other is a short sale, where the owners are folks like you and I
that own a home that is SHORT
where the loan ammount is greater than the market value
thisis a short sale
and it is very hard to complete.
In my opinion, REO or real estate owned short sales and foreclosures used to be great deals for investors or owners. Bank owned homes are easier then foreclosures but it doesn't mean its the only or best choice.
REO foreclosures can be very competitive for homes and used to be priced significantly lower than the market value. Unfortunately for buyers, the foreclosures are being priced low, but with multiple offers and a rise in the market, we are seeing them sell at higher prices. Our local foreclosure inventory is down by around 40%. Be sure to consult with your agent about the values of homes. You may find that move in ready or new construction are becoming great options again. =)
Here are some tips for buying a short sale or foreclosure home:
Understand the value of your short sale or foreclosure. Find out what the bank paid for the property deed and weigh it against the asking price. Determine whether or not it is truly a good buy. What are the comparable sales listed at? Look at what else is out there. Not all foreclosures are the best buy. Do some looking around before you settle on one foreclosure in particular.
Look up the listing agentâ€™s information and find their recent sales. Agentâ€™s typically work from one area and this can be very useful in seeing listing prices versus actual sale price.
Pre approval letters indicate that you are a serious and qualified buyer who can easily finance your offer. Pre-approval letters are often more valuable than prequalification letters.
Shortening the inspection period will make them view you as a more serious buyer.
The more steps you take to show the bank that youâ€™re a serious and qualified buyer, the more likely it will be that the bank accepts your offer over others. In buying short sales or foreclosures, choose a buyerâ€™s agent with experience on both sides. The more expertise and previous experience your agent can provide about the process, the more well-prepared you will be!
Contact us if your have REO Foreclosure and short sale questions.
12 Tips to Buying Real Estate in Southwest Florida
Learn more by visiting http://www.AckermanSWFL.com or calling (239) 565-7867.
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Most bank owned properties are from foreclosures. In either case you are dealing with the bank who is the seller. The good news is that most banks want these homes sold and off their books. They usually price their homes to sell and if they don't sell within a period of time they are not shy and lower the price until they recieve an acceptable offer. In addtion, they may assist you with financing or other incentives such as closing costs to get the home sold. Contact a local real estate professional who has experience in this area and get the help you need to be successful. Most banks will not talk direct to buyers.
All the best,
Jones and Co Realty
Bank owned and foreclosed homes is basically the same thing. I think you meant PRE-foreclosure. Both sales have good and negative aspects. Pre-foreclosures are usually in better condition because the owner is still living in the property but it takes a long time to complete the process. Foreclosed homes are not in such a great condition, many are vandalized but close a lot quicker.
Yes, bank owned is much easier to buy than foreclosures. Once the bank has repossessed the home, they move very quickly to get it sold!
Feng Shui Certified Broker of Real Estate
In my defination a bank owned house is a foreclosure. A corporate owned home is owned by Fannie or Freddie or people own homes as their primary residence or investment property. While they own them they can be a healthy sale or a distressed sale. In other words it could be a short sale and upside down, a distressed sale.. What an exciting market we have these days!
Debbie Albert, PA
Coldwell Banker Residential
Your question is...is it easier to buy bank owned vs foreclosures? In my opinion there is not alot of difference. Although there are several terms bank-owned, REO, foreclosure, corporate-owned, the difference is really who now owns the property. For instance, you might have a property that has a mortgage through Bank of America, but they might be just servicing the loan for a third party investor. Some banks may get the property back after it has foreclosed, while others need an approval to sell from an outside investor.
All in all, through my experience I have not found one that is actually 'easier' than another. The process is still the same. Much depends on how back logged they are to get to the paperwork and what channels they need to pursue for the approval. I have found that no 2 banks are alike...kind of like snowflakes. Hope that helps!