Buying a foreclosed home.

Everyone knows that the foreclosed homes, also called “Bank Owned” or “Real Estate Owned (REO)”, are the best deals out there. What is not really understood is the extra work and frustration that goes with buying a bank owned home. The banks have never lived in these homes so they can not disclose any deficts about the home. Most banks will not make any repairs, unless it’s something required by the buyers bank. The frustration begins right up front with the contract. Banks do not submit formal counters everything is verbal until an agreement has been reached on the purchase price. Once the price has been determined the buyer will get the signed contract; with the bank’s addendas waiving all responsibilities for anything about the home. It is very important that the buyer have the proper resources to investigate all of their concerns about the home. They need to read and understand the preliminary reports as well as communicate with the Title and Escrow Companies to ensure that they understand the information provided. A professional home inspection should help the buyer feel comfortable with the condition of the home. It’s a scarey process but the buyer could get a great home at a great price with some due deligence.