Buying a foreclosed home can be an excellent way to purchase a home far under market value. Since the bank already owns the home, you can expect to receive an answer on your offer within a couple days, and be able to close in 30 to 45 days.
So what should you be aware of when considering a bank-owned home? First, as mentioned in my previous blog, bank-owned homes, or REOs, are normally sold “as is”. What you see is what you get! I highly recommend both a home inspection and a wood destroying organism (WDO) inspection.
A second concern is a potential title problem. It has become an alarming trend in our real estate industry of banks listing properties for sale before verifying that they have clear title to that property. Many foreclosures in Florida were not done properly. If the foreclosure was not done properly, then a bank is unable to obtain clear title, and thus, cannot complete a sale to the buyer. Unfortunately, the buyer is usually informed of the title issues AFTER he has invested many hundreds of dollars in inspection and loan fees.
In summary, purchasing a bank-owned home carries some risk but can offer an incredible return. Contact me for more information.