What is a Bank Owned property?
Once a homeowner stops making payments on their mortgage, the bank begins the foreclosure process. The last step in the foreclosure process is the foreclosure auction. If no one purchases the home at the foreclosure auction, the bank becomes the owner of the home (Bank Owned).
What should I know about Bank Owned property?
The bank is now in charge of the property. They will evict, if necessary, anyone still living in the home. The bank will typically remove any debris or junk left behind by the previous homeowner. The bank will also decide if they want to repair any damage that was done to the home or leave it as is.
Typically, a bank will then market the property on the MLS and try to get it sold as soon as possible. Oftentimes, there is a lot of interest in these properties and several buyers may line up to try and purchase the home. Other times, the bank will incorrectly price the home and it may linger on the market until the bank reduces the price to draw more interested buyers.
Please be aware that bank owned property doesn’t always mean you are getting a great deal. Make sure to do your homework and inspections before finalizing the transaction.
Every bank handles these transactions differently and it’s impossible to describe every scenario on this website. Please contact Jeff at 801-518-5126 or email jwarn7@gmail.com to learn more about Bank Owned Properties.
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