Questions about bank-owned foreclosures.?

Question

are there any hidden disadvantages to buying a bank-owned home?

if you have any knowledge that would help me in any other way

regarding to this question it would be grate if you could add that to!

thanks

;D

Answer 1

Here is an answer I came across that is dated a year ago but should still be helpful:

"First of all you are dealing with a bank and not an individual Seller. It takes time to get a response from a bank and during the wait other offers may arise.

If you are the initial offer that is accepted by the bank, it will usually be accepted "subject to court approval". You will do all your due diligence (mortgage approval, home inspection, etc.) and spend the money on these.

At court there may appear competing offers and all potential Buyers will be made aware of your offer with instructions to re-submit all offers and that they must be higher than yours. Offers at this time will all have to be "subject free". If you are submitting an offer at this time it will be "subject free".

If you were the initial offer that brought the property to court you may lose out to another offer at this stage, lose the money you invested to this stage on inspections, and have to start all over again. This could be traumatic if you were planning to move in on the date of your original offer. It can be very stressful. In the frenzy of the sealed bid process, the price the house sells for, if there is multiple offers, is often much higher than the list price and the original offer.