To buy a bank-owned foreclosure home, get an inspection and appraisal of the property, search the title, and consider financing options. Places to find bank-owned foreclosure homes include bank websites and local multiple listing services.
Begin by getting an independent inspection and appraisal done on the property to determine its true market value. Some properties are severely damaged, do not have warranties of any kind, or are in poor locations, making them bad investments. A professional inspector can help to determine if the property is a sound investment and provide other crucial information.
Search public records for outstanding taxes and liens on the property before committing to a purchase. It is also a good idea to enlist a title company to perform a comprehensive and insured title search. Although banks generally clear property titles before listing them, due diligence prevents unnecessary problems.
Get pre-approved for a loan, preferably by the bank that owns the property. Alternatively, get pre-qualified by another trusted lender. Some lenders may not approve loans for properties that are not in move-in condition. Find out the cost of similar homes in the area before making an offer, and factor in renovation costs.
Be patient because reviews of offers on bank-owned foreclosure properties generally take longer compared to privately-owned homes. Different companies and individuals may be involved in the process, extending the time it takes to reach an agreement.