Bank Owned Property

5 Replies

When you find that the bank owns the property but it's not listed for sale, the neighbors  complain that the property is not secure, someone is going in at night , it looks like a forest in the back of the house so no one is caring for the property. What are the steps to take to buy the property from the bank?

This has been asked on the forum many times. Unfortunately there's very little you can do. If it's owned by a small regional bank and you have a strong relationship with them you could definitely go in and ask to buy the property. If it's owned by BoA, Wells Fargo or another big bank, there's basically no chance. You just have to wait until they list it with a realtor to sell. This could take months or even years. Banks will hold properties and only release a certain number onto the market at a given time to avoid too much supply flooding the market and causing prices to drop.

Thanks Nat....I've always heard that Banks are not in the Real Estate business but they seem to be the only (sellers ) listing property

@Linda M.

@Nat Chan

Linda, unfortunately Nat  is completely spot on. Once you know the property is bank owned...it's almost like it's not there in an investors eyes, as you just have to keep on moving. No matter how many stickers are on the door from the county or how awful it looks.

There are many town and city ordinances that make the banks(owners) responsible for the upkeep of the properties I know in california because of the danger of west nile virus swimming pools are espeically on the radar.Call code enforcement in your are to complain of the blight of the foreclosed homes 

If it's one of the "Too Big to Fail" banks, try to get to their asset management department. You'll have to start dialing for god only knows how long but persistence usually pays off to get to someone that takes care of properties owned by the bank. Send a letter themed from a neighboor upset about the blight and health and safety elements of the neglected and blighted home. I'd use dollar figures and big words that sound like pending lawsuits. That usually gets someone to call a local vendor to at least clean it up a bit and secure it. As others have posted, if its a local or regional bank, walk into a branch and demand (respectfully) to be put in contact with someone in REO or Asset Management. Then articulate your concerns.

This isn't for buying the property, but for ensuring that its secured and not impacting the quality of life of your home negatively by its proximity to your home.

If your objective is to buy it, yeah, wait till its on the market.

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