Buying a bank owned/Foreclosed (REO) home can be different than buying a home through a normal sale. Here are some of the most common questions and answers when buying a REO home.
Bank Owned FAQ
What if the bank gets multiple offers on the same property?
A few things can happen, if one is clearly better than the other (remember although banks do look at the number they also look at terms in the contract) they can take it. Or they can send something to each one of the people that has made them an offer and ask for their highest and best offer.
If my agent gets my offer into the bank first doesn’t the bank have to respond to me first?
No, banks are concerned about how much they can get from each property. They want the highest amount possible. However, once the bank has signed and accepted your offer, if another higher offer came in, that offer would be considered a “back up” and would not take priority over your offer.
Will the bank make any repairs to the property?
As stated above, banks will most likely not make any repairs to the property as the buyer is buying the home AS-IS.
Are the inspection periods and timelines the same as a normal deal?
Not always, inspection periods can vary. Although the buyer can still do an inspection the seller (bank) will most likely not make any repairs to the property and will often times not respond to the request to make repairs.
Will the Bank honor the deadline I set for a response?
No, if there has been no response, the bank may let the offer expire. Sometimes they will not respond at all.
How long does it take for the Bank to respond to my offer?
The response times vary depending on the bank. Some may respond within 48 hours, but some take 7 to 10 business days. Remember, banks are not open on weekends or holidays.
I am Shawn. I am a wife. A friend. An athlete. A lover of all things fun. And I am a REALTOR®. First licensed in 1997, I absolutely love what I do. Why? Because my job allows me to do the thing that I love most and do best: help people.