in real estate terms,,,,what exactly do they mean by BANK OWNED?

Question

DOES THAT MEAN THAT I WILL BE DEALING DIRECTLY WITH A BANK,,,, AND GET A FREE AND CLEAR TITLE TO A PROPERTY PURCHASED

Answer 1

It is a foreclosed home and the bank now owns it and is trying to sell it. If you are looking to buy an REO (Real Estate Owned..A fancy word for The Bank Now Ownes It) be prepared for a bidding competition with other investors. Get as much information as you can about the property as you can. REO's can take time depending on the bank. I have done REO's that have taken up to 2 months and others that were less than an month. It really depends on the bank and how many people are bidding on it.
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Answer 2

It means exactly this: The bank owns it. They foreclosed on the property and now they own it and are trying to sell it.

Although some banks may sell their forclosed properties themselves, most of them will use a real estate broker to handle the sale. If they are, it will work just like any other sale.

Any time property changes hands, a title search is performed and is normally backed up by a title insurance policy. You wouldn't normally buy property that had defective title though this can happen innocently -- hence the title insurance policy.

There is one important difference when you buy a foreclosed property. You will not normally receive a Warranty Deed to the property, but a Quitclaim Deed. A Warranty Deed provides a guarantee that the the seller has a legal right to transfer the property and that the title is clean and a promise to defend the title if a defect is discovered after closing. A Quitclaim Deed merely states that the transferor (seller) disclaims any right of title to the property without guaranteeing that they had the right to do so. As time passes, the value of a Warranty Deed decreases and is no better than a Quitclaim Deed once the seller dies (or if a business, ceases trading.)

Again, title insurance will protect your interests. If you take out a loan on the property, the lender will require title insurance to protect their interest. You can add protection for yourself for a small additional charge; mine was 20% of the lender's title insurance premium.

Answer 3

Yes, the bank foreclosed on it and is now selling it. Banks are usually unwilling to negotiate in price or contribute any seller-paid concessions for closing costs or pre-paids, so it's not always a deal. Check what local homes are selling for to see if you are getting a deal, or enlist the help of a real estate agent.

One thing you should do if you choose to make an offer is make the offer contigent on the appraisal and a home inspection. A lot of people trash their homes when they go into foreclosure, so an inspection could turn up a lot.

Answer 4

IIRC bank owned means it has been repossessed. the bank held the mortgage and thebank is now trying to sell it.

dealing with the bank, it depends, if they have it listed with a real estate co, you will be dealingwith tthe real estate broker. if not , then the bank is trying to sell it and you will be dealing with them.


free and clear title-- ask the one selling, but have a lawyer check that out.

Answer 5

It means the property is in Forclosure, be prepaired for a lot of work to be required for the property, but you can usually get a great deal.

Answer 6

You would have to ask your agent......... but it sounds like the house was taken for none payment from the previous owners and if that's the case,..... than ya, i guess.