Banked-owned properties, foreclosures and REO (Real Estate Owned) homes are increasingly popular terms in the news and on the lips of potential home buyers in Spokane, Washington. It matters little whether you are a first-time homebuyer or an expert Spokane real estate investor; almost every home buyer understands value and equity can be purchased in a down market with properties priced below market value due to circumstances surrounding the sale.
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Bank-owned homes are increasingly widespread in Spokane these days in the current economic downturn. The recession with its accompanying unemployment make it impossible for some to stay current on their mortgage payments. Bank foreclosures occur when a homeowner continuously fails to make mortgage payments for a house because of reasons like loss of income due to layoffs, medical illness and a myriad of other personal reasons.
Spokane bank-owned homes have become a quite popular investment target among the potential homebuyers because of their typically discounted prices which can be significantly lower than current market value. This is due to the economic laws of supply and demand, currently there are many more sellers trying to unload bank-owned properties than there are qualified buyers with cash or the availability of credit to obtain a mortgage.
A home buyer can learn a lot about the buying of Spokane foreclosure properties by working with a Realtor who specializes in the purchase REO homes in Spokane. Specifically, they can learn to deal effectively with the various short-sale, auction and foreclosure sale processes along with various payment options. Spokane Realtors like me also have special resources available to search the Spokane MLS for bank-owned properties.
Home-buyers interested in purchasing a REO property should prepare with patience as purchasing a bank-owned home can be frustratingly slow due to the bureaucracy and red tape internal in the bank's real estate departments. Bank managers often operate in their own time-line and must deal with multiple layers of review and management oversight. What seems obvious and logical to a buyer has a completely different perspective to the bank and response times can be excruciatingly slow.
Due diligence is always necessary when pursuing a bank-owned property. It is always important to enquire about the condition of the foreclosed homes before signing any purchase documents. One great option for protecting your interests is to stipulate a home inspection contingency. This allows you to hire a professional home inspector to conduct a complete inspection, top-to-bottom checking the material condition of the home for deferred maintenance along with obvious and latent defects. If the home does not meet your expectations you can then rescind the purchase easily. It is not wise to purchase a bank-owned home at a discount only to later discover large amounts of required repairs.
As with the purchase of any property, home-buyers should arrange for financing before commencing home shopping. With today's very low prices it is too easy to fall in love with a great deal only to lose out to a better prepared buyer. Contact me to start searching for the best bank-owned homes but also work with your lender and get your mortgage approved before starting to make purchase offers.