A new article by Real Estate expert Andy West, helps to clear some common myths regarding the purchase of repossessed homes. Read the full article here.
When it comes to purchasing a home, especially in this economy, you need to make sure that you’re getting the best deal for your money. One of the greatest opportunities available to home buyers, particularly new home buyers, are bank owned homes. However, popular thought often has a negative view on bank owned homes that prevents many buyers from considering them as options for their purchase. This negative social attitude is the result of myth and stereotypes that are not just untrue but positively ludicrous. Some of the most pervasive myths about buying a lender owned home are examined below along with what the real story on these affordable homes truly is.
Myth one: repossessed homes are run down. This may be the most common myth about bank owned homes. The unfortunate assumption is that if the home is owned by the bank then the person who couldn’t pay the mortgage also wasn’t able to pay to maintain the property. Even if this were to occur, which most of the time it doesn’t, the homes are open for inspection by potential buyers and maintenance of any run down or damaged items can be incorporated into the contract for the bank to fix them before closing. Just because you purchase of bank owned home doesn’t mean you’re purchasing a lemon or fixer upper!
Myth two: repossessed homes are undesirable or in bad neighborhoods. The assumption behind this myth is that successful rich people don’t default on their mortgages, so the only homes for sale for the bank are junky little trailer places. Yet nothing could be further from the truth. Unfortunately, the recession has reached all levels of society from the poor to the rich. A person defaulting on their mortgage has little to do with their socioeconomic position and more to do with a series of financial catastrophes that can happen to anyone. Bank on homes are available across the spectrum from small one bedroom units to large mansions.
Myth three: it’s a longer process to purchase a bank owned home. If you think that the bank is not a motivated seller, then you better think again. From the bank’s perspective, any property they have to repossess and resell is not just a source of unearned money, but is actually a drain on their resources. Every quarter the bank doesn’t have a buyer that home, they are responsible for taxes on the property as well as the maintenance to keep it looking desirable for any potential buyers. Banks want to get rid of their inventory of vacant homes fast to make a profit and also start up a new lending relationship that will be financially beneficial to them. This is why they are often willing to make huge concessions in the contract, from a ridiculously low price to the payment of the home owner’s association fees to making substantial renovations on the interior just to get you to close.
As you can see from these three myths above, there’s a lot of misinformation out there on repossessed homes. And in a situation like this, what you don’t know can hurt you, the least in the wallet. Bank owned homes are wonderful options for people who are looking to invest in property, purchase their first home, or pick up a vacation home somewhere. You wouldn’t believe the number of homes in your own town that are for sale by the bank, and the quality and location of many of these homes would probably shock you. If you’re searching for new home, be sure to check out the bank owned homes in your desired area. Chances are you’ll be pleasantly surprised!
