Is it good to buy a bank owned home ? BHANU RAVAL. CHICAGO.

Asked by Bhanu Raval, Wilmington, NC Tue Mar 11, 2014

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Kraig Marquis, Agent, Wilmington, NC
Tue Mar 11, 2014
Bank Owned Homes can be a great value if you are wiling to inspect and budget for potential repairs. These homes are sold as-is, so it's very important to know their quality and condition up front. Banks do allow for inspections, but this period is much shorter (typically 7-14 days) than a traditional resale, so you have to act quickly. Your attorney will ensure that the title is clear and transfer of ownership is smooth and valid. Make sure you work with an agent who has experience with these type of transactions and you should have very little to worry about. Best of luck and contact me if you need assistance.
Kraig Marquis
Intracoastal Realty
SFR - Short Sale and Foreclosure Resource
1 vote
thanks..Bhanu. Chicago.
Flag Wed Mar 12, 2014
Jeff Lesley, Agent, Wilmington, NC
Tue Mar 11, 2014
There are some great opportunities. You just need to make sure that you have your bases covered with a great agent, home inspector and attorney. I have worked with several buyer of where we were able to uncover title issues, condition concerns and more but you really need to have people working hard during the inspection phase. We were able to find it, address it and have it cured before the buyer stepped into a mess. Also keep in mind that many of them will have a shorter inspection window per the bank docs or Fannie Mae docs so know the fine print.

If you are buying any home, especially a foreclosure or short sale through a part time agent only selling 4 or 5 homes a year just make sure that you know what you are getting into.

If I can help just let me know.



Jeff Lesley
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Tue Mar 11, 2014
Yes, it's a terrible idea and I speak form 35 years of experience as someone who has bought and sold over two dozen homes and who is in the business. I've never bought a foreclosure and the reason is simple there's insufficient reward 199 times out of 200 for the additional risk that comes from buying any bank owned property. I've attached a link below that goes into considerably more detail.

This is particularly true for first time home buyers who rarely have any spare money for unexpected repairs.

Couple this with the arrogance of the asset managers who "sell" these properties and there's absolutely no compelling reason to consider foreclosures. If inexperienced buyers would stop purchasing them, the prices would drop to where it might make sense to consider them.
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