Want to Save money By Buying a Foreclosure Directly From The Bank?
The banks are not in the Real Estate Business, no should they be. What with the whole monopoly issue. Truth is, by the time a ‘Foreclosure’ becomes available for sale, it is listed by an agent as well as managed by an Asset Managent Company.
The Super Great Deal of buying a home for half of the value would more likely be bought at the courthouse steps, also known as ‘The Auction’. Risky process, and you have to close almost immediately on the property, as-is with no recourse. Once you buy it there, it’s yours. Problems and all, including title issues.
At the auction, the home is sold for at least what the balance of the note is. This may not always be a bargain…. I have purchased properties the regular way, after seeing them sell for higher at auction! How does this happen?
The bank will bid what they owed to protect their interest. If someone bids higher, they get the home. If not, the bank at least keeps it. Then turns over to the department in charge of liquidating the asset. The asset manager will have a valuation done on the home, and list the home accordingly. Sometimes at a loss, sometimes for a gain. It all depends on the condition of the home and the current market.
If a property was purchased with very little down, at the height of the market…the bank may loose on that one. If the home was nearly paid off, and in good shape, they will make out. It all depends.
What most buyers think of as foreclosures, are typically listed with an agent, and available to the general public. This way, at least you have an opportunity to research the title to the property, have a home inspection performed, and then purchase or back out based on what you know about the property. Even though the seller (the bank) may not fix anything at all, at least you know what you are getting.
Most banks require the buyer to sign not only a State Promulgated Purchase Agreement, but their agreement and addenda as well. Be careful, and read these documents. They often will spell out procedures for inspections, cancellations and other important matters that may affect your rights later in the process or even alter the State Agreement. (I am not an attorney, and this is not legal advice. If in doubt about contract language, please consult an attorney.)
If you are interested in purchasing foreclosures in the San Antonio area, please give us a call and we will be happy to answer any questions you may have before beginning the search with you. We are here to help!
