All across America banks and credit unions are dealing with a huge glut of repossessed real estate. Many of these properties are turned back to the bank due to job loss or other unforeseen circumstances. Many of these banks don’t have the manpower to re-market the homes and will typically sell them at deep discounts just to get them off of their books.
There are many benefits to buying from a credit union or bank directly. They have the ability to offer substantial price reductions, where another seller may not be in a financial position to do that. They also have the ability to offer special loan terms for those that purchase their REO properties.
The best way to find credit union and bank repossessions for sale is to visit them directly. Most banks will post their repossessed properties online on their websites. Searching local bank inventory can be easier if you use a free online directory like RepoFinder. RepoFinder is a list of URL links banks who offer REO propertiy for sale. Once you find something you’d like to buy, keep in mind that every bank will have it’s own way of accepting offers. Some will take multiple bids before selling, while other will sell to the first person who makes an acceptable offer with or without an agent involved.
Here are some additional tips if you’re going to make an offer on a repossessed home:
Price – Find out what the value is on your own. Before bidding check the value estimates with websites like Zillow or Realtor.com. Have a realtor do a market analysis, or get the opinion of an appraiser with a short form appraisal.
Condition – Ask the finance company if they know of any damage to the home. A home inspector will tell you about the homes condition if you don’t know what to look for. If they have an appraisal already done, ask to see it and be sure to read to section that describes the property condition.
Financing – Find out how much it will cost monthly. Loan rates are at an all time low, but you might be able to negotiate lower. Banks have a lot of flexibility when they are lending their own money. Be sure to ask about special financing terms when you buy from the bank.
Use smart sense when buying a bank or credit union owned home. Ask a lot of questions about the property. Don’t be afraid to walk away from a deal if it doesn’t feel right to you. With a little work you’ll find that diamond in the rough.