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Bank
Owned Real Estate for Sale, REO, HUD Homes, Foreclosures, Houses, Townhomes for Sale
REVISED November, 2011:
There are literally thousands of bank owned properties for sale in
all of Hampton Roads, many of which are within the same price range as new
construction and regular re-sales. In addition, there's now a vast
selection of properties that have already been foreclosed upon, purchased by an
investor, and re-listed below market values. Since all bank owned
homes are sold "AS-IS" with the bank doing NO REPAIRS, most of my first time
buyers are choosing to purchase a bank owned home that needs very little updating, yet can still be purchased
for $20,000 - $40,000 below market value ("market value" is the price of what properties are selling for, and
not necessarily the "tax assessed value").
Banks are similar to regular home sellers, and they will first list a
property at full price and will be unwilling to accept an offer below list price within the first 30 days.
Sometimes that initial list price is a good value, yet most times it is not. Only a qualified Realtor such as
myself can help you make that determination. However after 30 to 45 days pass, and if no offers are presented, the bank will
then reduce the price so it becomes a better opportunity for the buyer. The longer a property sits
on the market unsold, the more likely a bank will be willing to negotiate price and terms. However, if a property remains unsold for too long, it
typically means there's something seriously wrong with the property, and can only be purchased with cash or with a 203k
rehab mortgage with 3.5% down. Sometimes, it can take 2 to 4 months for a bank to eventually lower their price so it
generates real interest and when that happens, a buyer can actually find themselves in a bidding war competing
against other buyers -- even in this "slow market." So a buyer must position themselves so they are ready to
submit their best offer first, and being pre-approved is the best way to do that.
I see a common misconception among some buyers that
a bank owned home can be purchased with bad credit or zero down payment, and
nothing could be further from the truth. Buying a bank owned home is just
like buying new construction, or from a regular home seller, and a buyer must be pre-approved
for a mortgage before they are able to submit an offer and have it accepted by the bank. That is, you can submit an offer without being
pre-approved for a mortgage however, a bank will not respond to your offer or may completely reject it. In
addition, all Bank of America owned properties now require a buyer to be pre-qualified through them before submitting an
offer, even if you're already approved through your own lender. There's no law preventing this action, but banks just
want to be sure that you are a qualified home buyer. Banks are typically dealing with 70,000 short sale and bank
owned properties at any one time, and each asset manager can be working with 400 - 600 files a day! So just like
with any seller, if the "price is right," then you must make your first offer your best offer possible! Also, when
considering bank owned properties, a buyer must be in the position to entertain a 50 to 80 day closing time frame, and
be able to close with only a 4 to 7 day notice. Your purchase contract and closing date will be agreed upon between you
and the bank ahead of time, but those dates are typically delayed, or possibly moved up, due to the overwhelming amount
of properties a bank is working with.
If you're interested in receiving a list of bank owned properties for sale, I now recommend that you request listings for the desired area
you wish to live in using the links above, and just make a note in the Comments section of your needs. In turn, I
will email you a list of everything currently for
sale which will include new construction, bank owned properties, short sales, and regular re-sales too!
If you have additional questions about bank owned
properties or the home buying process, please do not hesitate to
contact me anytime. I am always ready to answer your questions at no cost or obligation!
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