Bank owned homes can be a great deal but they have hidden dangers. Here to talk about what you need to know before you buy a foreclosed home our real estate expert Nick Krautter from Keller Williams Real Estate and Sellpdx.com
Q. Before we talk about the problems with foreclosed homes do you think they’re really a good deal?
A. Yes, the average price per sqft in the last month of non bank owned was $139 and for bank owned it was only $92. A huge discount.
Q. What is the biggest issue?
A. The banks don’t sign contracts until after you’ve signed a bank addendum and often the bank addendum changes the time you have for inspections, the time you have for appraisals and many other important contract points.
Q. What about disclosures?
A. Banks do not give buyers property disclosures because they are exempt.
Q. You still get title insurance right?
A. You do but be very careful that they are not excluding coverage in the event that the foreclosure is later deemed invalid. You need to take special care that the title is valid.