Why You Should Consider Buying a Bank Owned Home

If you’re considering distressed properties in your home search, chances are you’ve heard of several types including foreclosures, short sales, and bank-owned or real-estate owned (REO) homes. It’s possible to get a great deal on distressed properties, but REO properties, in particular, come with a unique set of benefits. Read on to see if this type of house is for you!

Bank-owned properties are homes that do not end up selling at auctions. Thus, the house becomes a foreclosed property and is sold at a discount rate with less competition and less risk.

Advantages of buying a bank owned property:

  1. No homeowners to deal with– Because an REO is owned by the bank, you will be dealing directly with the bank when you buy a bank-owned property. So, since the seller is the lender, you can easily negotiate with the bank on some of the closing costs.
  2. No outstanding taxes to pay -Usually, the bank will always waive any outstanding property taxes that the last homeowners stopped paying for in order to attract home buyers.
  3. Option to request a home inspection– Properties that are sold at foreclosure auctions do not have the choice of requesting a home inspection before closing a deal. With bank-owned properties, this is not the case. It is essential to ask for one before purchasing an REO since they usually need repairs and upgrades.
  4. Can be Sold at below-market prices– Bank-owned properties can be sold at discounted prices with great advantages, such as low down payments and low-interest rates. This doesn’t guarantee you’re going to get a great bargain, however. Depending on the work that needs to be done, you may end up paying as much as a traditional sale.

If you’re considering purchasing an REO property, the first thing you want to do is find a pro who’s experienced with these types of transactions. At Metrowest we specialize in distressed property sales – give us a shout today and let’s start the process!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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