The sales of bank owned foreclosues accounted for approximately 38% of the closed sales of homes in the Sparks area according to data from the Northern Nevada Regional MLS. In addition, as of March 10th these types of sales are 62% of the closed sales in Sparks for March. The number of pending sales in Sparks that were either bank owned foreclosures or short sales was 59% of all pending sales as of March 7th.
Opportunities for buyers abound in the purchase of a bank owned foreclosure.
What Are The Benefits of Purchasing A Bank Owned Property? Bank owned properties are often times listed below market value for a quick sale. When a bank gets a property back through foreclosure they are required to put aside a percentage of the properties value in reserves. This takes away from the pool of money they can lend out. The bank’s primary source of income comes from loaning money so they have a big incentive to sell the property quickly so they will have money to lend.
What Are The Drawbacks of Purchasing A Bank Owned Property? When a lender sells a property they have gotten back through foreclosure they typically require the buyers to waive the Seller’s Real Property Disclosure. This document is required by law of typical sellers so that any issues with the property can be disclosed up front. In addition, most bank owned properties are sold in “as is” condition which means that the lender will not make any repairs indicated on the inspection reports. The length of time the process takes to finalize an offer is often frustrating to buyers.
How Is The Buying Process Affected? When purchasing a bank owned property, the process is basically the same with one exception - getting an accepted offer. Many banks use a third party asset manager to negotiate on their behalf. Negotiations with the asset manager once the offer is submitted may be verbal. When an agreement is reached the asset manager prepares a counter offer with the agreed upon terms. This agreement is then sent to the lender for their final approval. This process can take several weeks.
For a email list of bank owned foreclosure properties please contact me.