Buying Short Sales and Bank Owned Homes

Bank owned homes and short sales are properties associated with bargains, especially foreclosed home and many are. You can get a good deal and by good deal I mean something below current market value though there are a few things you give up versus buying from a 'normal' seller. Some things are worth it and others are not.

Distressed owners usually means distressed properties, but not always. inPhoenix agents are experienced with both bank owned homes and short sale, we have been through many scenarios and can help buyers to ensure a more informed better buying process.

If you do have specific question please don't hesitate to get in touch and here are a few things to know about buying short sales and foreclosed homes in Phoenix.

Bank Owned Foreclosed Homes.

You can search through all active bank owned homes on this website.

  • The purchase is always AS-IS. Which means don't expect the bank to make any repairs. Sometimes they are willing to work with a buyer if the repairs are reasonable or they may offer a credit toward closing costs, but this rarely happens. Be especially cautious with FHA and VA loans which require a livable condition to get the loan.

  • Liens. Be aware on who pays existing liens, like HOA past dues, transfer fees and transfer fees which can be very hefty and many times the contract along with the bank addenda to the contract are not very clear about who will be responsible for these.

  • Get an inspection. It's always wise to get one, but especially with a foreclosed homes. Not only will the lender not tell you anything about the property, but it may have some issues as a result of the former owners retribution.

  • No Clue and No SPDS. These two documents, usually provided by the seller, are not available from a bank. Basically don't expect to learn anything about the property or it's history from the seller.

  • Competition. Bank owned homes are often under-priced in addition to having a stigma of being a good deal so expect some competition for the home, especially if it is under-priced.

  • Good deal. Just because it is a foreclosed home, does not mean it is a good deal. While most homes are sold as good deals, many are over-priced and you have to remember that part of the reason they are lower priced is because of the condition which may require lots of work and sometimes just a little so count up how much it will cost to get it move in ready.

Short Sales.

  • Pre-foreclosures. Not all short sales are pre-foreclosures. That means not all the owners selling short are late on their payments. Sometimes people have to move for jobs, or they have medical issues and are not late, but they still need to sell.

  • Price. It is the bank that sets the price. Even though the seller may have accepted the low bargain price, the seller's lender still needs to approve it and they won't if it is far below market value.

  • Time. The short sale process is tedious and time consuming. Get ready for a long wait, anything from 3-8+ months with no guarantee of favorable results.
  • AS-IS. Just as with bank owned homes, expect short sales to be as is purchases.

  • Be informed. Be well informed about buying a short sale. They are very fickle.

  • The contract. Get a good agent that can write an equitable contract. The contract as it is, is heavily skewed toward the seller and the seller can readily accept another offer and cancel yours. A good agent will know how to prevent this.

By hiring inPhoenix Realty Group you get agents with hundreds of transactions performed and dozens of short sale and bank owned sales.

That means they are informed, experienced and know how to protect your interest and you will need them because the risk are heavy.

Related Articles.

Phoenix Home Buyer's Guide

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Wayne Beneteu

Wayne Beneteu
Realtor
602 574-8059 beneteaurealty@yahoo.com

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