7 Tips For Purchasing A Bank-Sold Home

In many parts of the country, particularly those hardest hit by the housing bust, the best home purchase deals may often be bank-sold. That’s because many homes have been foreclosed by banks, and many other pre-foreclosure properties are being ’short sold’ at a loss to the banks to attempt to avoid foreclosure and further loss. A free mortgage calculator can determine monthly payments or savings required for down payment and closing costs, but they cannot tell you how to purchase a bank-sold property.

What Is A Bank-Sold Property?

A bank-sold property is one in which the bank literally owns the property following foreclosure, or else controls the sale via final approval or denial of any purchase offers, as in a short sale.

Short sale means that the current homeowner wants to sell the property, usually in an attempt to avoid the more significant credit impact of a full blown foreclosure, but owes substantially more than what the property is currently worth. In this case, the homeowner must seek approval of any purchase offers from any lien holder–the bank–who may lose money as a result of the sale.

7 Tips For Purchasing A Bank-Sold Property

No bank wants to be in the business of selling properties–that’s just something that they have to do sometimes. With bank property-sales departments inundated with foreclosures and short sales right now, you may need to make things as easy as possible for their overworked employees in order to get the house you want.

In addition, many foreclosed properties may be in poor condition, or have other defects which may or may not be obvious to a prospective buyer without certain experience. That can increase competition for the true value properties among other prospective buyers, including real estate investors.

Here are some tips to follow if you are considering purchasing a bank-sold property:

Many bank-sold properties are good bargains–just remember to look before you leap into an offer. Use a free online mortgage calculator, follow these tips, and the right home can be yours.

This entry was posted on July 1, 2010 08:20 and is filed under Other , Down Payment , New Home Loans , FHA Home Loans , Mortgage Rates , Short Sales , Mortgage Insurance . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response.