We recently closed out a Bank Owned property. There were quite a few surprises that we don’t want to catch you off guard. Luckily we have a manager that has done hundreds of these so he guided us through the process. Here’s what we learned:
- What is bank owned property?
- What role does investor play?
- What is mortgage insurance?
- How are bank properties negotiated?
- Why should I pay extra for title insurance?
- Do I pay the escrow fee?
- Can I flip the property (remodel & sell)?
- and more…
Quick Tips from Matthew:
There are some fantastic deals to be had buying repossessed homes aka Bank Owned Property. There is more work on your part to purchase them however, this leaves most buyers running for the hills. You really need to do more diligence up front. Specifically on their purchase contracts. You need to know exactly what terms they are communicating in ALL the fine print. Who pays escrow, TX fees, title fees, and any further restrictions they have. Most buyers are not willing to do this diligence so it leaves you with more leverage to negotiate on the property.
More about Matthew:
Matthew is a licensed Real Estate Agent in Arizona. He works with a team cooperative team of agents to assemble the best real estate solutions possible. These are based off client needs and marketplace conditions. Make sure to give him a call if you are in Southern Arizona. You can reach him at (520) 344-3481 and or checkout his work at KeysToArizona.com