Why buy Bank owned properties?
![Tampa Bank Owned Homes](static/images/bank-owned.jpg)
Banks are not in the business of maintaining an inventory of houses. They want to get rid of the houses as soon as possible.
This is a great opportunity for first-time buyers and investors because most of these homes are priced about 20% below market.
Once the bank owns the property, it will take care of eviction if necessary, repairs, pay old fees and/or other maintenance costs and negotiate with the IRS the removal of any tax ties if necessary.
How banks sell REO's?
- REO is Real Estate Owned by the Bank.
- Banks normally have a REO department that takes care of this. Of course, they would like to get the best price.
- When you make an offer, the banks will usually make a counter-proposal. Don't be surprised if you get a bigger counterproposal than you expect.
- Banks want to show their shareholders and investors that they are looking to get the best possible price for the house.
- You have to fight the counter-proposal. Your offer will likely be reviewed by an approval board.
- Even after they accept your offer, they may include words like "subject to corporate approval.
Property status
These houses are almost always sold "as is" with a right to inspect. You incur the inspection fees (termites, general inspection, mold, etc.).
A possible inspection period must be included in your offer that will allow you to stop the sale if the inspection reveals damage that the bank will not correct.