What Are Bank Owned Homes?
Bank owned homes are homes that are legally owned by a bank. They are also called REO properties or lender-owned homes. This distinction means that the home was originally foreclosed by the bank but never sold at the subsequent auction. Usually what happens is that the bank sets the opening bid at the auction, and sets a price high enough to recover the outstanding balance. However, if there are no bidders then the bank must legally take possession of the house.
Unfortunately for the bank, the outstanding amount plus other expenses (which takes into account late payments, penalty payments, interest, attorney fees, foreclosure fees) is usually much higher than the home’s market value. The bank lists the home as bank owned real estate and groups it as a non-performing asset.
What makes foreclosed homes hard to sell is the fact that buyers must pay with cashier’s checks in hand. Properties are sold as is, and sadly, this is often times includes homes in which the former residents are still residing. That is a lot to deal with, and not surprisingly, many of these auctions are not successful.
When these foreclosed homes become bank owned properties, they revert to the bank and become more attractive properties. The mortgage loan no longer exists and residents are ordered to leave the premises by the bank. Sometimes the bank even pays for repairs to the home. The bank pays off tax liens, homeowner fees and other expenses. If you live in Scottsdale, bank owned homes should be of interest to you. New buyers are entitled to a title insurance policy and the right to investigate the policy. Bank owned homes are very attractive to investors interested in purchasing Scottsdale real estate.
Why should you buy Scottsdale lender owned homes or lender owned golf homes in Phoenix? These homes usually sell at a bargain price and, as stated, come with far less “baggage” than foreclosed homes. Usually, at this point, the bank is just trying to turn over a fast profit.; They want to count their losses and move on, and as long as they hold this house, they cannot do that.
Bear in mind however, that they are going to try to make as much money as possible. The bank usually sells bank owned homes in Scottsdale, AZ for a much lower price than market value. They may make a counter offer, so be prepared to negotiate. You can find bank owned homes in Scottsdale, Arizona or anywhere throughout the Phoenix Metro area.
This is a process you can’t do alone. You need an experienced real estate agent to help find the best deals and do the negotiating for you.
Call The Holm Group at 480-206-4265 for more information on a bank owned house in Phoenix. They are the experts when it comes to REO properties. Start your search here or contact The Holm Group below to receive a personal consultation