This is from an interview I did with News Radio 101.1 FM KXL on the inside story on bank owned homes.
Q – What are the big differences between bank owned and short sales?
A – bank owned you are buying from the bank and it’s much faster to get a response – usually 24-72 hours vs 2-4 months. You also don’t get disclosures because banks are exempt.
Q – Are bank owned houses really a better deal?
A – They usually sell at a 20-30% discount but many of them require work so factor that in before you buy. For Fannie Mae owned homes there is special financing available which you can find at homepath.com
Q – Any other things buyers need to keep in mind?
A – You may be paying to get utilities turned on in the winter. You’re also going to get a “bank rider” addendum which is different from bank to bank but almost always changes normal timeframes so read it carefully.