How to Make an Offer on a Bank Owned Home

Most bank owned properties on the market have already failed to sell at auction.

Investors or families seeking to buy foreclosed property often look for bank owned homes. Properties go into foreclosure due to delinquency with the mortgage, but not all foreclosed property will be sold under market value. Properties typically become owned by banks after a unsuccessful auction of the property, and the bank will want to sell the property for the maximum amount possible. Most successful purchasers of bank owned property are qualified buyers.

Things You'll Need

• Pre-approval letter from lender
• List of bank owned properties
• Real estate agent

Instructions

1. Call your lender to set up a meeting. Tell your lender you are interested in buying foreclosed properties. Tell your lender you will need a pre-approval letter. Provide your lender with all documents requested in order to determined the amount you can afford. Ask your lender to write a pre-approval letter stating the loan amount for which you qualify.

2. 

   Pick up a list of bank owned properties.

   Call local banks and ask for a list of bank owned homes that are currently available. Review the properties that are listed and identify those you are interested in, taking your loan qualification amount into account. Drive by the properties you have selected and select the properties you would like to see inside.

3. 

   Make sure to visit and inspect any property prior to making an offer.

   Call a local real estate agent and ask them to set up visits to the properties you are interested in. Also, ask the agent if they have a list of bank owned properties from the MLS. Review those properties and select any you would like to see. Set another day and time to view the new properties with your real estate agent.

4. 

   Banks will accept the the highest offer from a qualified buyer.

   Decide which property you want to buy. Call your agent and tell them you are ready to make an offer. Meet with your agent and write an offer for the property. Submit your pre-approval letter with the offer. Banks will often look at multiple offers at the same time. They will accept the highest offer from the most qualified buyer.

Tips & Warnings

• Inspect any property before making an offer.

• Always consider the location of the property and its potential resale value.

• Note the condition of the property and budget any repairs that are needed,

• Avoid scams

References

• Realtor.com: Don't forget your pre-approval letter
• Mortgage Reference Library: What should a pre-approval letter contain?
• Real Estate abc:Buying Bank Onwed Real estate