Buy the Banks Real Estate
Now is the time to buy Bend Oregon Bank Foreclosures. Prices are very affordable and interest rates are near all time lows. Unemployment is starting to fall and the stock market is starting to rise. Unemployment is starting to slowly taper off. There's news nation wide that the recession is ending.
Buying a bank foreclosure is different than buying a home from an owner that is listed with a Realtor. Even though the banks list their properties with different Realtors they play by different rules. You need an expert to help you find, negotiate a good price and close a bank foreclosure.
Finding a good property is not that difficult in this electronic age. We can narrow down the type of property you are looking for quite easily. Price range, size, age, bedrooms, baths, garage, lot size, school district, section of Bend etc. You name it and we can narrow down the homes available to what you are looking for.
Once you have found the home it's time to make the offer. As a general rule the banks are only coming down around 5% off the list price. 10% in a few rare instances. If the property is priced right there's a good chance of multiple offers. If this is the case the bank usually comes back (e-mail via listing agent) stating that there are multiple offers for each party to make their highest and best offer.
If a property has only been on the market for a few days the lender will not come down much at all. Some lenders won't even look at an offer until the home has been on the market for 5 days or more.
Banks also don't even look at the sales agreement until their is mutual acceptance on price, terms and closing date. This is e-mailed to them by the listing Broker. They also won't look at an offer unless the buyer has pre-approval from a lender or proof of cash if it's a cash sale. Negotiations are conducted by e-mails between the listing broker and the buyer's broker.
Here's a recent counter offer I received from the listing broker on a bank foreclosure I was negotiating on behalf of my clients:
SELLER COUNTERS AT:
NEW SALE PRICE TO BE $715,000
ALL OTHER TERMS REMAIN THE SAME
While this unsigned counter offer was sitting in the e-mail another offer from another Realtor came in. My clients quickly accepted the bank's counter offer because they did not want to loose the property.
Each situation is different and each bank and each listing broker works a little bit differently. After the price and terms have been agreed upon by e-mail the bank sends a 10 page addendum (unsigned) with the price and terms for the buyer to sign first. Then the bank signs everything at once. This can take a week or more.
Once their is "mutual acceptance" it's time for the inspection. I insist that all of my buyer clients make their purchase contingent upon a professional home inspection. Many of the bank owned homes are winterized and the heat is left off. All utilities need to be turned on for the home inspection. Broken pipes are common even on homes that have been "winterized."
Once the inspection contingency has been removed by the buyer it's time to proceed to closing. Another hurdle we are seeing is low appraisals. You need a broker that will provide the appraiser with good comparable sales and talk to the appraiser to insure a good appraisal is forthcoming.
Once the appraisal is completed and the buyer receives full loan approval it's time to send loan docs to escrow and close the transaction. This is another possible problem. Many of the lenders are using out of town escrow companies that are over worked and under staffed.
Local escrow companies can have the buyer sign the same day they receive loan docs. Out of town escrow companies can take days to get docs to a second escrow company in the same town as the buyer and have the buyer sign docs there (courtesy signing) and to have them notarized. I won't go into details here but I have seen problems crop up on recent bank foreclosure sales I have not seen in my 33 years in the real estate business.
The bottom line is Bend Oregon Bank Foreclosures are a great buy right now! Prices are extremely reasonable and interest rates are near all time lows. You need an experienced broker to help you buy your home.
If you’re thinking about buying a home in Bend you should sign up for Jim’s free New Listing Notification Service or call or e-mail today. Jim Johnson is a Certified Residential Specialist and has been selling quality homes in Bend Oregon since 1981.