Bank owned property -friend or foe?

ugly20house

FORECLOSURES(aka BANK OWNED PROPERTY)..

Foreclosures are rampant in many communities. They are higher than average in the community of Lynn, MA.

You can purchase bank owned property at well below market prices. These low prices come with some extra work.

Here are some suggestions if plan to look into buying bank owned property and or any property for that matter.

Scope out the neighborhood (at night too). Drive around the streets surrounding the property. Pay close attention to the homes in the neighborhood and the upkeep.

Call the police department to see if crime is common in the area. Many police departments have their call logs online!

http://www.lynnpolice.org/police_call_log.htm

Above is the link to the police department in the city of Lynn’s call log.

Check out the schools. Even if you do not have kids, but plan too!..Communities with a good system have hirer resale value!

Have cash or access to it. This can be in the form of cold hard cash or a home equity line of credit.( if this is an investment or a second home purchase) Mortgages are harder than ever to get now. Most bank owned properties have stipulations on hand that if an offer goes to purchase and sale, monies need to go into an escrow immediately.

Hire a good real estate lawyer. He or she will protect your best interests.

-If you are buying a condo ask for detailed information regarding: the condo association account and special assessments. Ask to see a copy of the master condo policy. BE PERSISTENT!

Hire a home inspector. Check their references. In the past I have seen clients hire two! You can also have speciality inspectors.

If you are buying bank owned property, be prepared to do your home work. Many of the listing agents are not familiar with the bank owned property they have listed. A high percentage make no effort to familiarize themselves with it. The burden is left to the buyers agent and or the buyer. In the case of most bank owned property I would suggest you hire a buyers agent to protect your interests and to do the leg work.

Banks assign bank owned property to agents all over the state. An agent is Dorchester may be representing a property in Marshfield. 99.9% of the time the homes are empty and on a lock box so you do not even meet the listing agent!

-BE PREPARED TO WAIT!!!! Banks take weeks, if not months to get back to you with offers submitted.

The real estate market may be poor in it’s current condition but NOW is the time to buy if you have the patience, means and energy!

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