Buying bank owned property

4 Replies

Does anyone have experience dealing with purchasing bank owned property. What are some of the pitfalls to deal with. There are bank owned properties I want to move on. One for myself and others for a flip.

Thanks

Hey @Claude Beauregard - Timeline is definitely something to consider. Depending on the bank, and whether or not there are any sconds on the home, the REO process can be very lengthy (90+ days).

The property will also be sold "as is", so make sure your offer takes into account CapEx and deffered maitenance. They've usually been sitting vacant for long periods, so vandelism and squatters is fairly common. Best of luck with the transactions!

Another question. Curiously I noticed there are some properties on realtytrac that are listed as bank owned. Yet not information is provided as to the bank that has ownership of the property. Does anyone know how I find out which bank my have ownership. I even checked the local assessor's office in that country to see if it listed the bank. It doesn't.

Originally posted by @David Acosta :

Hey @Claude Beauregard - Timeline is definitely something to consider. Depending on the bank, and whether or not there are any sconds on the home, the REO process can be very lengthy (90+ days).

The property will also be sold "as is", so make sure your offer takes into account CapEx and deffered maitenance. They've usually been sitting vacant for long periods, so vandelism and squatters is fairly common. Best of luck with the transactions!

There aren't any 2nds on a bank owned property. I suppose its possible that the senior lienholder failed to notice the junior lienholder but that would be gross negligence on the part of the foreclosing entity. While i'd be concerned with all of your other caveats, an existing 2nd on an REO wouldn't be one of them.

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