Once the Foreclosure auction takes place, if it does not sell at auction, it becomes Bank Owned also known as a REO.Is there really a difference between Bank Owned Homes and a Foreclosure? With a shortage of homes For Sale in home buyers are looking to Bank Owned homes to find their Dream Homes. The problem is most buyers and even some buyer agents do not know know what is involved in buying a Bank Owned Home.

Not all buyers can always buy Bank Owned Homes. Some may be cash only because of their poor condition. Some may look like a diamond, but may have hidden defects. You MUST do your home work literally and know what you are getting into and what the cost to fix anything in that home is.

The BEST way to be prepared is by hiring a “GOOD” Buyer Agent. who is WELL experienced in your area and with Bank Owned Homes. One that will guide you through each step of the Buying or Selling process. To the consumers who were successful, they found the secret which I would like to share with you.

The HARD TRUTH is that the BEST way to be prepared to buy or sell a home is by hiring a “GOOD” Agent. One that will guide you through each step of the Buying or Selling process. To the consumers who were successful, they found the secret which I would like to share with you. Free advice can be worth what you paid for it, so when you are ready, do it right. 

If you read all the way to hear, i hope you like my series of “catchy titles” They are meant to grab your attention and let Buyers and Sellers know how to avoid such pitfalls by simply hiring a better agent. One that will work with them throughout the buying and selling process.

• Include a pre-qualification letter or proof of funds with your offer. Failing to do so will often lead to rejection or lost time while they have to ask you to provide it as another offer gets accepted while yours was delayed.
• Do NOT add contingencies to your offer accepted as banks look for “Clean” contracts without contingencies other than obtaining a mortgage.
• If you are applying for a FHA mortgage, check before making your offer if the home can even get a FHA mortgage in it. if it needs work. You can easily get a list of what is acceptable to check if the home meets the criteria or not.
• When making an offer, you should not base your offer on deducting a specific percentage off the Listing price. You do not know if that listing price is market value, priced above market value or already priced at a great discount below market value. Assess what the home is worth in today’s market and deduct for repairs.
• Do not include time limits for the bank answering your offer, Banks work at their own pace. Be prepared to wait for an answer and signed documents. Putting deadlines for answering your offer will simply get it rejected or ignored.
• Do not assume everything is in working order without testing it BEFORE you make an offer. Virtually all homes are sold ‘As Is”.where the BANK will not renegotiate after a home inspection or fix anything not asked for in your initial offer.
• Do not assume the bank will just grant you an extension if you are not ready to close. Cash offers and conventional loans are expected to close within 30 days and FHA and USDA loans are expected to close within 45 days.
• Do not assume all Listing Agents of Bank Owned Homes are the same. There are some very good ones and some very bad ones. The sale also only goes as well as the listing agent is attentive to their listings and uploading and updating offers.