So, You Want to Buy a Bank Owned Property?
Bank owned properties seem to be the buzz these days. I remember when most people would steer clear of bank owned properties because they were seen as difficult to negotiate, in poor condition and risky to obtain a clear title. This put them to a large degree in an investor’s category. In many respects, this is still true, however, with the widespread foreclosure wave that has swept the country, many people are taking the risk to invest in this little understood specialty market. One thing is for certain, if you don’t have experience and expertise in this area, you should contact Bryant Realty to safely lead you through the process.
To be sure, there is a world of difference concerning the processes of the sale of a bank owned property and a standard single family home. When we talk about dealing with the bank, usually what we are referring to is dealing with asset managers that are managing a foreclosed property for the investor. In other words, you won’t be dealing with your local Bank of America employee that sits at a desk in your local branch. Rather, you will be dealing with individuals who specialize in asset management that may be completely across the country. These individuals have quite possibly never even been to your state, much less neighborhood area.
Almost always relatively speaking, the property will be listed with a real estate agent and advertised on the MLS. Then the property goes out onto the internet where consumers see it and contact their Realtor. From there, customers usually want to see the property and then decide if that is the property for them. If so, then an offer is submitted for the home.
How the offer is submitted varies greatly across the wide array of asset managing companies. Some require that you use standard forms and many others have a computer formatted data entry scheme that is used. All require that the buyer/s have proof of financial capability for both cash and financed transactions.
Once all of this information is properly submitted, it will take some time to hear back from the asset manager. The time between offer and acceptance, counter or rejection varies also. Usually, once the asset manager’s response is given, there is a time limit in which to respond back. If your response is accepted, then the offer is signed by the asset managers and usually a bunch of addenda are added on to the contract you just submitted to them that consists of the banks contractual agreement. Sound confusing? It can be because of the large amount of paperwork (usually in the form of contracts) being pushed in front of you to sign.
Once you agree to the addenda, it’s time to get your inspections and financing done. The contract signed with the bank will define the timelines in which the inspections and financing must take place. It is extremely important that these timelines be met, because a violation of them may put you into a position of contractual default and put your good faith escrow monies at risk.
Assuming that all went well with the inspections, you have obtained the money to pay for the bank owned property and the title company is satisfied with their findings, all there is left to do is to close! Closing in my experience on bank owned properties is almost never done at a title company as is most other standard sales. Instead, the title company will send out a remote closer to meet you and your agent at some pre-agreed upon location. Bryant Realty has a conference room that we use for our bank owned closings down stairs from our main office.
So, there you go. This is a very general description of the process to buy a bank owned property. If you are looking to buy one or any other property in Brevard and Indian River Counties in Florida, give us a call today at (321)-222-8347 today! Remember, you will work directly with our Broker Keith Bryant who will guide you through the process from finding the right house, building or vacant land for you, all the way through closing. We hope to hear from you and earn your business soon!