Bank of America Real Estate Buying Bank Owned
Bank of America Real Estate buying bank owned isn't much different than buying any other property for sale. The primary difference is real estate investors and home buyers purchase homes directly from the bank instead of negotiating with the seller's real estate agent.
Individuals interested in Bank of America real estate buying bank owned, typically work with a realtor assigned by the bank. However, in some cases, buyers will negotiate the purchase price with the bank's loss mitigation department. Regardless of the listing agent, buying bank owned homes requires a bit more tenacity than buying houses through traditional means.
It is crucial to engage in due diligence prior to making an offer on bank owned foreclosure homes. Although real estate owned (REO) properties are priced lower than other homes on the market, there is a very real probability the property will require some level of repair.
REO homes are properties which fell into foreclosure. Since these properties were owned by homeowners struggling with financial problems, chances are they could not afford general maintenance or expensive repairs. Additionally, evicted property owners often take out their frustration on the home by intentionally causing damage.
Hire a licensed home inspector to thoroughly inspect the property and provide a written repair estimate. Add an additional ten-percent to the total cost to make certain you have enough financial cushion to cover all repairs needed to return the bank owned property to livable condition. Use the repair costs as a negotiation tool with the bank to reduce the purchase price.
Be prepared to negotiate when buying Bank of America bank owned real estate. Don't be afraid to ask BOA to reduce the asking price or required down payment. Ask for a lower interest rate and settlement costs. In some cases, Bank of America will waive closing costs or provide a low rate of interest in order to liquidate the property.
In order to be successful in negotiating the price of Bank of America foreclosure real estate, buyers must be prepared to provide documentation of necessary repairs and renovations. Photograph property damage and items in need of repair. Obtain repair cost estimates from licensed contractors. Submit copies of work estimates, photographs and any other supporting documents to BOA which support the request for a reduced sale price.
The final step of Bank of America real estate buying bank owned is to obtain financing. Today, credit is harder to obtain than in the past. BOA might offer financing to cover the full purchase price and estimated repairs to buyers with excellent credit. Buyers with good or fair credit might be required to provide 10- to 20-percent down payment. Individuals uncertain of their personal finance credit-worthiness should consider obtaining prequalification prior to searching for bank owned foreclosure homes.
We invite you to learn more about buying real estate owned foreclosure properties by perusing our comprehensive bank owned homes article library. Discover tips, tricks and resources for buying foreclosure homes and obtaining home loan financing.
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