Where do I buy houses that have been repossessed by the bank?

Question

Someone told me that bankrupt houses go much cheaper than houses sold normally. Do the banks then sell it quickly and cheaply and if so do they go through a estate agent? Do they publicise that the house is bankrupt as it could have potential to harm someones credit rating

Answer 1

Based on England. I have been selling repossessed property for 10 years, you can buy them at an auction and through an estate agent. In my experience the lenders in possession undertake three independent valuations/market appraisals. So they are not initially any cheaper when coming onto the market. When selling through an agent they may not even accept an offer of the asking price if the property hasn't been advertised at least twice. Even when an offer is accepted, there has to be a public notice inviting any further offers. The price will only be reduced over time as the lenders have to try and achieve the best price possible in the given market condition at the time.The main reason why you can pick them up cheaper is due to the fact that they have to sell, and the buyers know that which affects the offers, also, they can sometimes be left in a bad state of repair by the previous owner.

Answer 2

This Site Might Help You.



RE:

Where do I buy houses that have been repossessed by the bank?

Someone told me that bankrupt houses go much cheaper than houses sold normally. Do the banks then sell it quickly and cheaply and if so do they go through a estate agent? Do they publicise that the house is bankrupt as it could have potential to harm someones credit rating

Answer 3

I just bought a bank owned house. I had a home inspection done to make sure nothing was a major repair. You have to pay for that upfront but it is well worth it. I bought my home in the snow and we couldn't run the air conditioner without damaging the pipes. Everything was solid as the home imspector said. Two days after the closing, I had a waterfall coming from my ceiling. The water heater leaked and came through my family room ceiling. I had the water heater replaced (new) for just the service call of $50.00. That is why you also get a home warranty when you purchase your home. Now its summer and I have found out my A/C doesn't work. Lucky for me if I have to have it repaired of replaced it will only cost me $50.00 service call.(get the picture). The previous owners can not come back against you otherwise you can take legal action against them. All I needed for this house was paint and carpet, and I installed stainless steel appliances. Since then,I realized what a great bargain I had because I bought for not only $3,000 under what it appraised at, but since I bought (3 months), my house is valued at $38,000 more, and the house down the street that went on market just recently has risen again to $57,000 more in value. Plus I found out that the previous owner had 18 adults living here as a halfway house for Mexico, but I had two small holes to repair in the wall,paint and carpet only to do. Funny how things turn out.

Answer 4

They can go cheaper, either through auction or sold via an estate agent instructed by the bank.

The reason they are cheaper is that the bank wants to recover as much money as quickly as possible. This normally means selling the property at a discount.

Most estate agents will already have a list of people who are interested in this type of property.... Normally investors or developers who are in a position to move quickly.... The bank gets their money quickly, the estate agent gets his commission quickly and the buyer gets a bargain

Answer 5

Its great to profit from the misfortune of a family who maybe have lost everything! Does the thought of kids being thrown onto the street because their parents have been unable to keep up their mortgage make you feel good? Oh what a "good businessman" you are!



You can have their house, lucky you!



Be aware that the bad karma and vibes in that house will bring you bad luck. Profitting from another's misfortune is very wrong.



This sort of question shows what a disgusting lack of care and respect for others some people have in our society.

Answer 6

Hi

It's just a thought....but if people weren't so quick to buy up repossessed houses then perhaps the bank's wouldn't be so eager to throw people out on the street, in lots of these cases children are involved but that wouldn't worry the "bankers" (possible spelling mistake there). Who say's it's turning into a dog eat dog world?

Ray. West York's. U.K.

Answer 7

They're often placed with a local auctioneer. Keep watching for an advert in the local paper which mentions "on instructions from the Official Receiver" or "on instructions from Barclays Bank" etc.



A house cannot be bankrupt, only the owner. It will not affect your credit rating.

Answer 8

These properties are called REO's or bank owned properties. And, yes they are on the market much cheaper than others sometimes discounted 25-40%. Your best bet is to find a real estate agent who specializes in these types of properties like myself. You can save 100K or more purchasing these properties. If you are looking in Southern California, I would be glad to help you.

Answer 9

You might try a house aution. I'm not sure about the financial side of it. If you do buy one and the people there had bad credit you might have to notify the bank or dealer dealing with the house purchase. I hope this helps.

Answer 10

At the bank that repossessed them.

Answer 11

anyone who buys a family home that is up for reposition and the family want to buy it back should be took for a spin lol

Answer 12

banks have auctions you get them a bit cheaper it dose not affect your credit history when buying one