Foreclosure and Bank Owned Real Estate Listings
What is a Bank Owned property?
A Bank Owned or Bank property is "Real Estate Owned" by the bank or other lender. Typically, a Bank Owned property has already been foreclosed upon and gone to auction without having been successfully bid on. The property is then owned by the bank and is marketed through traditional methods. In Contra Costa and Alameda County, there are a significant number of Bank Owned homes currently on the market. This has recently represented as much as 40% of the total inventory of single family homes. If you are in the market for a home, there is a good chance you will be looking at Bank Owned property.
What is a Pre-Foreclosure property?
A Pre-Foreclosure sale is sometimes called a "Short Sale" where the home is listing for less then is owed to the bank or lender. Typically, a Pre-Foreclosure property has not yet gone to auction. Not all Pre-Foreclosure properties are great deals but many offer a good value. Purchasing a Pre-Foreclosure property involves a different process then purchasing a traditional or Bank Owned home. Since any offer must be approved by the holder of the note, these purchases can take longer then a traditional purchase. If you are not on a time schedule and can afford wait for a Pre-Foreclosure sale to close, Pre-Foreclosure homes are a great alternative to traditional sales.
What are the benefits of purchasing a Bank Owned property?
There are several benefits in purchasing a Bank Owned property when compared to foreclosures, short sale property or a traditional purchase from the current owner;
- 1. Banks are not in the business of owning homes. They are Motivated to sell the home and get it off their books quickly.
- 2. This is a business decision to the bank. There is no Emotion involved in dealing with an Bank Owned property. This makes it easier to present and negotiate the offer.
- 3. Unlike a foreclosure sale, you have time to view the property and get the appropriate inspections.
- 4. There is less time pressure. You are able to take the time to find the right property and do it in your schedule. You do not have to make a quick decision like you would at an auction.
Are there issues in buying Pre-Foreclosure or Bank Owned Properties?
As with any purchase, there are many issues to consider;
- 1. Not all Pre-Foreclosure or Bank Owned properties are bargains. You need to consider the location, condition of the property, price and other factors when making a decision. You need to evaluate comparable properties in the area to determine the correct value for the property you will be making an offer on.
- 2. Most Pre-Foreclosure or Bank Owned property is sold "as-is" and it is thus critical to perform a thorough inspection of the property for any defects and damage.
Working with a Licensed Real Estate agent is critical when evaluating a Pre-Foreclosure or Bank Owned property to purchase. You want to work with an agent who knows the local market, understands these transactions and is familiar with presenting and negotiating an offer to a bank on a Bank Owned or Pre-Foreclosure property.