What do I need to be aware of if I am considering buying a house with the bank as the seller?

Answer by  Liz59 (10966)

Well, you need to be aware that the house was probably on bankruptcy before. Try to negotiate the price as much as you can.

Answer by  Jessie124 (1885)

Remember: banks want to unload their foreclosures as fast as they can. They don't want to be in the real estate business. Usually a bank will insist on selling a house 'as is,' which means what you see is what you get. They will rarely negotiate. However, you can get very cheap houses by buying from banks.

Answer by  Darry (3853)

The bank is going to try to recoup as much of its losses on a house as possible, therefore you can expect they will drive a very hard bargain. Often times, unless there are gross defects to the house, the listed price is about as low as they will go. Bring your offer but do not expect a lower price.

Answer by  Stephen (123)

When a bank owns a house, which will often happen through foreclosure, when the previous owner defaulted on the mortgage by not making the monthly payments, the most important things to consider are: whether anyone else has a claim to the house, and whether the house is occupied.

Answer by  sara99 (851)

The purchase of a house from anyone is a binding contract. The seller could have an attorney and if in doubt the buyer should use an attorney to verify the contracts.

Answer by  shastie (1601)

Remember you can get a very good deal. If the bank owns it, it was probably a foreclosure. Banks don't want houses they want money, so negotiate.

Answer by  patti (29325)

There aren't a lot of special considerations except for the fact that the "bank" has not lived in the house and therefore cannot address specific issues.

Answer by  cmkekbif (778)

First of all, expect a long process. Bank or corporate owners take a while to process contracts and the sale.

Answer by  LeheckaG (1826)

In real estate, "Buyer Beware". Due sufficient due-diligence: Do a COMPLETE deed/title-search, Check with local-court-clerks for liens/mortgages, Check with the local-city/county building/zoning departments for code-enforcements/violations. ... Depending on the circumstances/terms: Some sellers only provide a "quit-claim deed" rather than a "warranty deed". You might have to file a "quiet title" action in court to extinguish/resolve other claims.

Answer by  blahblah (670)

There are two main problems. The bank may take a long time to respond to your offer. And the home may not be in good condition because the previous owner couldn't afford to take care of it or because they took appliances or fixtures with them when they moved out.