How to Buy Bank Owned Properties

How to Buy Bank Owned Properties

The Pros And Cons Of Buying Bank-Owned Properties

The different pros and cons of buying bank owned property can determine the choice of the buyer’s decision to buy homes. Some people do think that the cons outweigh the pros, however if new homeowners take a closer look in the facts of the situation, they will discover that the pros and cons somehow balance themselves out.

A Low Price Option

Most real estate property is offered at a low price simply because banks like to sell the property as quick as possible, giving the low priced scenario an extremely great chance to be sold at a very fast rate. This also influences the competitive prices and causes a lower down payment demanded to actually get rid of the property.

Hidden Costs

A small con to this scenario is that when you buy properties from the existing homeowner, you’re only required to pay a small earnest fee. However, buying from banks is quite different. In fact, some people pay a minimum of $1000 dollars for this earnest fee that would’ve have been intensely cheaper if they would’ve bought a home from the selling homeowners.

The Process

Another great pro to buying bank owned properties is that most buyers find the process remarkably simple compared to purchasing homes from homeowners. Emotional ties, and past euphoria from diverse family memories play a huge role on the difficulty in buying from these homeowners. A lot of families sometimes raise their kids in these homes before selling so it’s obvious why a difficult business process happens. However, unlike buying from homeowners banks are required to have a buyer go through a lot more documents and papers that gives the experience a more tedious mood.

Getting a Clean Start

The bank lenders also usually wipe out all existing liens and other unusual claims made on the property before the buyer purchases the home. Another unfortunate con to bank owned properties is that most of the time they do not let inspectors or the buyer go inside to see if the interior was maintained, or if there is existing damage that needs to be fixed. This sometimes is the ultimate deal breaker when trying to buy properties from these banks.

Vacant and Ready to Move In

Bank-owned properties most of the time are vacant due to the fact that the previous owner has been evicted, leaving you not to deal with any odd personality of the homeowner. This also saves the buyers time and makes it extremely easier to buy the house without the emotional roller coaster involved in the eviction from the previous owner.

No Known History

Another crucial con to buying bank-owned properties is that they don’t supply the buyer with the history of the property. This causes the buyer to miss out on important information like how well the neighborhood is surrounding the property, and if they ever had any type of vermin problems within the property.
Posted on Nov 27, 2013


Landlord Obligations: The Responsibilities of a Landlord

Becoming a landlord is a major deal and no one can simply get up and think, “well, yes I think I should be a landlord and rent out my flat.” If you are thinking that you would like to be a landlord,... More

The Best Landlord Forums

Landlords and aspiring landlords, do not become as such, without guidance and advice. There is a lot that goes into being a landlord nowadays; in fact, there is so much to learn that it often confuses... More

The Biggest Landlord Problems and How to Fix Them

Renting out an apartment or a house can become a constant revenue source for landlords, but at the same time, it gives rise to several problems. It is a fact that high standards, a strict lease... More

Landlord Tenant Disputes

If you are currently thinking of becoming a landlord only because it helps you have a constant stream of income, you should think twice. It’s not that you should not consider offering your property... More

List of Landlord and Rental Property Tax Deductions

When it comes to paying taxes, most individuals have no idea that they may be paying so much without needing to do so. The same goes for landlords. Why should you or any other landlord be paying more... More

How to Handle Tenants from Hell

For a landlord, it is of immense importance to ensure that they only let a qualified tenant to move in. It is however every landlord’s nightmare when they get tenants from hell who make the tenancy... More

Explanation of Tenant at Sufferance

There are many terms and concepts used in the realms of landlording, and when it comes to learning everything in the property business, most aspiring property owners find them in trouble. Most... More

Handling a Tenant Breaking the Lease Agreement

Not all tenants are alike; some of them are good, others are from hell. That’s why one should know the right way to deal with bad tenants. They can be troublesome in the sense that they can damage... More

Top 10 Landlord Tips and Tricks for 2013

Landlord Tips and Tricks for 2013 Landlord Tip #1 Your going to want to plan ahead for a rainy day when you have unexpected expenses that arise. Take the time to obtain a line of credit when cash flow... More

Laws and Rules for Renting Houses

If you're about to rent a house or an apartment, there are some things you need to know. Here is a short list of those things. There's a law against that. - Every state has a “Landlord-Tenant Act”... More