Posted in Blog  
  on Oct 02, 2014

How To Buy Bank Owned Property

One of the easiest ways to get involved with investment properties is to take a look at what bank owned properties are in your area. Banks are often wanting to unload a property because let's face it – they're in the money business, not the rental business. They don't want the costs of taking care of a home's maintenance, so they're willing to part with a property for a fraction of its cost. If you want to know how to buy bank owned property, then here are some steps to take.

1. Find the Right Property


Some properties have been on the market for ages and have had very little care over that time. Most banks will only send someone in once per quarter to take care of a property that went into foreclosure or was returned to them through abandonment. Look for a property that just got onto the market so that you'll be less likely to need to invest into an extensive renovation.



2. Look For a Great Deal


If you find a property that looks interesting, then take a look at the assessment of that property. Compare it to the price that is being offered and you'll be able to get a gauge of how much work might need to be done. You'll also be able to see how much potential a property actually has!

3. Contact the Real Estate Agent


Even the property is owned by the bank, you'll need to speak with a real estate agent to begin the purchasing process. There will be a listed agent on the property, either with a sign or a note that has been placed on the exterior door or interior front window of the home. If you don't want to deal with that realtor, just get the MLS number of the home and then approach your preferred agent to begin the sales process.



4. Secure Funding


Unless you've got the cash on-hand to purchase the property right now, you'll need to secure some sort of funding in order to close on the property. Many banks that own a property are willing to be a little lenient with their lending terms if you have the reputation of being a solid investor who is responsible with money. Otherwise approach your preferred lender to get the deal that you want.

5. Go Through Closing


If you get the financing package approved and the bank has accepted your offer, then you're ready to close on the property. This process generally takes about 30 days from the initiation of the loan and you'll meet with all of the parties involved at a title office. You'll be signing all of the paperwork for the home, present payment for any costs or fees that are your responsibility, and then when the process is over, you'll be given the keys to the property.

A bank owned property is a way to get a great deal on a good home. If you're willing to fix up that home a little bit, it could be an amazing asset for you and your family for years to come.

Related

The Landlord Tenant Board: What it is and When it is Needed

Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More


How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More


The Best Sites for Rental and Lease Agreement Templates

Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More


The Best Landlord Associations for Landlords to Join

If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More


Unpaid Rent

When you talk about the most common disputes arising between landlords and tenants, nonpayment of rent has to be there in the list. People rent their properties to earn money, and when a tenant... More


Section 8 Landlord Pros and Cons

If you have ever rented a living space and have had to move many times, you’d already know how difficult it is to find decent, affordable and secure living premises. A person has to deal with the same... More


Landlord Inspection Checklist: Rights, Letters, and Reports

Landlords across the state have the prime responsibility to make sure they inspect and up keep their property once they have rented it to the tenants. Inspections can occur monthly or yearly depending... More


Landlord Maintenance Costs and Responsibilities

Everyone knows that a landlord’s job is not easy. These folks have specific duties and responsibilities that they must perform in order to be fair. Being a landlord is not a position but it is, in... More


When to Withhold Tenant Security Deposit

Asking for a security deposit is quite common in property dealings. The reason to ask for a security deposit is to have something that would help a property owner recover some of their financial... More


How to Report Bad Tenants

Bad tenants are the worst-case scenario for any landlord; no one wants them, and if someone has them, they want them out in any way possible. There are times when landlords try as much as they can to... More