Problems in buying a Bank Owned home in Highlands Ranch
The media is always talking about it, the guys at the cocktail party are always talking about it, and on late night infomercials someone is always talking about it. Yes, it’s the one person who bought a bank foreclosure and made a ton of money, either flipping the home or keeping it as a rental.
Truth is in the Denver real estate market, it takes a lot of hard work, the money is deceptive, and there will always be surprises. Consider these items:
- Interest on the loan will always keep adding up
- Banks sell the homes in “As-Is” condition
- Lower priced homes in the Denver area usually get multiple bids
- With multiple bids, they ask for and get “Best and Highest Offers”
- Inspections don’t always reveal everything
- Banks sell the homes based on Appraisals, and several BPO’s
- Banks have a Listing Agent on their side for pricing
- Banks may have “title”, but was the foreclosure proper?
- Banks sell with a Special Warranty Deed
- Remodeling bids, and the quality of work may not be Equal
- Who at the bank has the authority to sign off and sell the home?
- Banks Addendums protect them from now until the end of time
- Just because it is “Bank Owned”, does not imply it is a bargain
- HOA assessments, and penalties may need to be readdressed
- The really profitable homes will probably be in less than desirable areas, and in questionable school districts
These are a few of the concerns I have seen in the Denver real estate market. When dealing with Bank Owned “REO’s”, buy with the proper representation, things can go smoothly, and hopefully profitably for your financial future. Real Estate should be part of everyone’s financial portfolio. Consult a real estate broker for details.