Property Q&A in Valencia>Question Details

Wendy Watson…, Home Buyer in Spring Valley, CA

Hello, I am a current homeowner in San Diego and am looking to buy or rent a home in the Santa Clarita Valley.

Asked by Wendy Watson Comey, Spring Valley, CA Tue Jun 16, 2009

How does a bank owned home sale work?

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Wendy - as you can see you are looking to move to an area that has a lot of great Real Estate agents and in fact a lot of great people as well.

I think you are definitely asking the right questions and most of the issues with REO (foreclosure) properties have been covered.

The only issues that may be left to cover are specific to your needs as a buyer. Make sure you are represented by someone who has your best interest at heart and you will find your happy home.

Good luck in your search and if you need anything please don't hesitate to ask.

Nicole Burns
0 votes Thank Flag Link Wed Jun 17, 2009
Hello Wendy,
Bank owned and short sale transaction are similar to traditional home sales, however both bank owned and short sale transaction have specific additional contingencys that need to be met. Whats important for buyers to know about purchasing in the Santa Clartia Valley in todays market, is as follows; #1 Know your purchasing power by being prequailified. #2 Home Inventory is at an all time low in our Valley, which means mulit offer competition on available properties. #3 It's critical to interview and hire a Realtor that will take the time to educate you on these transaction. An informed decision is the best decision,

Please vist our website at to learn more about the services my wife and I provide.

Gary & Jennifer Ricco
0 votes Thank Flag Link Wed Jun 17, 2009
It differs from bank to bank. Most will require that you provide a pre-approval letter from their specific lenders, proof of funds, etc. The property is sold 'as-is', and often times the bank will not pay for items that are typically 'seller paid fees'. The important things is to be represented by an agent who understands the nuances of each bank, and potential pitfalls along the way to avoid. Our office currently represents both buyers and banks in the selling of REO property, so if you have any other questions, please let us know. Best of luck!
0 votes Thank Flag Link Wed Jun 17, 2009
We deal in both sale and rental properties in Santa Clarita Valley including listing and sale of bank owned properties. If you need references, do ask.

Bob Khalsa
Broker Owner
United America Realty
U. A. Property Management
0 votes Thank Flag Link Tue Jun 16, 2009
Hello Wendy,

My team specializes in Santa Clarita and we would be happy to help you with a potential condo/home purchase - or rental. We do both. You can visit our website (linked below) to check out some of the best listings available. We break down Santa Clarita by areas, so you can easily view listings the right way...since Santa Clarita has many different areas and neighborhoods.

With that in mind, a bank owned sale works just like a regular sale in many ways, except the bank does not have to make certain disclosures to you, the buyer. They have never lived in the home, and only acquired it through a trustee sale (type of foreclosure auction), and so they couldn't possibly disclose to you detailed information about a home, that they really know nothing about. Many people, for this reason, prefer buying homes via a regular/standard sale, due to the extra information they are able to learn and obtain, via disclosures made by a homeowner directly to you, the buyer.

But, with a bank owned home purchase, you will still be able to have X amount of days to inspect a property, investigate details about it, and the area it's in. You'll also be allowed a certain contingency period to do your due diligence for your financing. Essentially, there is still a way out in most cases, even though you're buying the home as-is. Plus, buying a bank owned home can at times, save you thousands off of actual market values. There is however some intense competition for them amongst buyers - at least here in Santa Clarita.

There is really a lot to know, and learn, about the buying process, and how it affects you....please feel free to call us at our office sometime this week, if you're interested, so we can advise you best. Perhaps renting might be a better option for you, at this point....we can probably help you to determine that after speaking with you.

I look forward to hearing from you sometime! Best of luck with everything.

- Robert Mickalson

The Robert & Brian Team @ Realty Executives Valencia
Web Reference:
0 votes Thank Flag Link Tue Jun 16, 2009
Hi Wendy,

Basically, a bank owned home sale is similar to a regular sale, with some differences - mainly being that the banks will often have their own addendums to the contract which they insist on using, and often try to shorten the buyers time frames for contingencies. Sometimes they will also insist that the buyer pays for certain closing costs that are customarily paid for by the seller as well. REO sellers are also exempt from certain disclosures, such as the standard "Transfer Disclosure Statement" normally required to be completed by the seller. Each sale is different, and any potential buyer would have a chance to review the sellers addendum and conditions before agreeing to the contract.

By the way, I looked up this property for you 27282 Baveria Way, and according to the MLS, they already have all the offers they are accepting as of yesterday, so as of now the property is no longer available.

Hope this info helps.. Please email me if you have any questions..

Have a good night!

John Barry
Coldwell Banker Residential Brokerage
15490 Ventura Blvd.
Sherman Oaks, CA 91403
Cell: 323-810-7976
0 votes Thank Flag Link Tue Jun 16, 2009
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