Hi everyone. This is your Tampa Realtor Lance Mohr and in this video I want to
talk about bank owned homes. What you need to know and understand when you buy
a bank-owned home and some tips to give you so you don't get hurt or taken to
the bank when buying a bank-owned home so that's what I'm going to go over in
the short video if you're like a lot of people you're looking at bank owned
homes for sale because you think they're gonna be cheap you think they're gonna
be a good thing to buy and you know that may have been true in the past it's not
as true now so let me just go over how the process
works in with banks because a lot of times people think they work very
similar as a short sale and that's not the case short sales or trainwreck
they're they're horrible bank owned property it's not as bad because when a
bank takes the home back and it's actually been foreclosed on so it's not
a foreclosure it's been foreclosed it's a bank owned now some people call those
re owes which stand for real estate out and it's not such a bad thing so they're
gonna they're gonna go out there and they're when I say them they're gonna
have a real estate agent go out there and take a look at the property they're
gonna get an estimate from the reorder of everything that needs to be done
they'll probably send an appraiser out there and get an appraisal on the
property the realtor will probably do a BPO which is a broker price opinion then
they could even bring people out there like a roofer or other people
electrician if there's something wrong with the home to take a look at it so
they really know what they're dealing with now the one thing about bank owns
they're not about disclosure they basically even though the law the
Florida law not an attorney you wanna get legal advice but the worldö law
states that if there's something that would affect the value of the property
this owner which would be at the bank or whomever has to disclose that either in
writing or verbally and if the owner doesn't want to do it the realtor does
but unfortunately the real orders bread is buttered by the bank and a lot of
Realtors don't care about disclosure in this case I know it's sad but true
so you want to definitely get your ducks in a row if you're thinking about buying
a bank owned property but let me just sort of walk through the process you
like a bank owned home you make an offer on it
it's usually going to take the bank about two to five days to come back and
either agree to your offer or give you a counteroffer one thing you have to
understand when you buy a bank owned home these are not individuals who own
the home this is a corporation yes they want to get the home off their books and
a lot of times the the asset manager or the person who's the who's handling the
bank drop the property for the bank is paid bonuses to sell it within 30 days
but yeah one thing you have to keep in mind in we right now are in a seller's
market so this is important a lot of these bank owned properties are
overpriced I know it sounds weird because when you think of a bank owned
home you think good deal but that's not always the case so have your real estate
agent or have whomever if you have a real estate agent do a market analysis
make sure it's worth it you'll probably know by looking at other homes so let's
say it is you make an offer on it it's going to take them a couple days to get
back to you and then what they're going to do is once they agree and you have
everything squared away as far as verbally they're going to ask you to
deposit the earnest money or some states call it hand money into the with the
title company or the attorney now in Florida
thank goodness a lot of them aren't using two attorneys anymore because it's
just so much easier with title companies and they don't take advantage of you
with all these crazy fees so that's the good thing so they'll go ahead and
consider it sold it won't be changed in the mls until they actually have an
executed contract but they're not going to take another offer and kick you to
the curb once they say it's done the agents supposed to and they pretty much
always do this we'll just tell potential buyers I'm sorry
but it already has an offer on it you could submit a backup if you will and
then usually what will happened about a week
after that some cases it could be two weeks you'll get everything in writing
but you're going to be expected to put down your earnest money and do all your
inspections and the bank usually tightens up those inspections so where
are state contract in Florida states 15 days for inspections they could tighten
it up to ten or seven most of the banks are ten some of them are actually seven
days for an inspection the one difference between the aciss contracts
with a bank opposed to an individual seller is with an individual seller it's
it it's announces contract but now they have wiggle room if there's something
wrong with a home they'll generally fix it banks not the case they don't want to
fix anything now there are some cases where they will get it fixed if it's
gonna if it's going to be a problem with the lender on closing so you know if
there's say an issue with the roof maybe there's a roof issue there's a little
league yeah they may go out and fix that because they know they'll not be they
won't be able to sell it to a buyer and get the most amount of money but then
some banks don't care though they'll know there's a roof leak they won't they
disclose it there's a roof leak their agent won't disclose if there's a roof
leak you can't tell there's a roof leak then your inspector goes out there finds
a roof leak you just spent money for an inspection you order the appraisal and
boom you know you can't get the home because there's an active roof leak in
the building that paint won't fix it so there is a certain amount of liability
with banks but overall again they're nothing like short sales I don't think
they're as good as dealing what they're with the regular individual who's
selling their homes because I've always said with banks you take out all common
sense all logic and you're left with a bank and unfortunately that's the way it
is but there are some that are good deals because at the end of the day they
don't really do any advertising some of them will fix the home up and some of
them will just leave it the way it is and they're like hey you know what we
just want to sell it we don't want anything to do with it
is the price and you know you're gonna get the home but don't be fooled these
days in the seller's market by thinking banks are all given away great deals
because that isn't necessarily the case at least not in our market I see banks
that are continually doing price drops out there so do your due diligence get a
real estate agent that knows and understands and most importantly that
his sold bank owned properties if not dozens of bank owned homes so though
understand the whole process a little bit better now I'll let you know one
important tip and this is a money tip here so pay attention to this with
almost all banks out there they will pay the owners title policy which is sort of
normal on a pre-owned town but they are not going to pay the docs stamps so you
need to budget that in there if for those of you that are outside of Florida
you probably call them intangible taxes so in the state of Florida you better
budget seven dollars per thousand for the stamps so just understand that if
you have a realtor that doesn't understand bank owned properties they're
not going to know to ask these questions I always when working with a bank always
ask these questions upfront to confirm they're going to pay the owners title
policy which in Florida is five dollars per thousand plus seventy five dollars
and that their and if they're paying the doc stamps because they pretty much will
always pay the title insurance but not the doc stamps so I hope this helps if
you like this video please give me a thumbs up have any questions reach out
to me or leave them in the comments below I wish you the best of luck have a
wonderful day
you