Bank Owned Homes

Let’s face it, if you are a real estate investor in today’s market there is a great chance you will be buying a bank owned home. And there are some key differences you need to understand;

  • Banks really, really don’t care.  The file is handled by an asset manager that makes $14/hr either way.
  • Bank addendums are tedious and written to their total favor.  My favorite is the $175.00 re-key fee so many charge for horrible locks.
  • You may be responsible for turning on the utilities for inspections.  Which means deposits and waiting around 4 hours for the water company to come turn the water on.  If I’m doing it, expect to pay for my time.
  • Now some banks are requiring actual copies of actual cashier’s checks just for the offer!  Outrageous.

I could go on and on.  But the bottom line is there are a different set of obstacles for purchasing a bank owned home.  On the other hand, there can be great equity to be had if you know what you are looking for and what to buy.

2 Comments

Filed under Investment Property

2 responses to “Bank Owned Homes

  1. Seth Graber

    Chris,
    Been reading your blog for a while now. My wife and I are looking to possibly buy a foreclosure in the next 2 years as our primary residence. I know you’re mostly communicating to property investors, but do you ever act as an agent for someone like myself?

  2. I help people buy under the market all the time It’s a great way to buy a house! Just give me a call. 913.568.1579

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