Buying a Bank owned Home...?

Question

There's a home on the market that is owned by the bank. I guess it got foreclosed or something. Anyways, i think that they will usually sell it to a person for less so that they can just get rid of it. So my question is, if they want to get rid of the home, will the same bank ever give you a loan for it? And if so, can you get a really low interst rate from them if not a 0% interst rate from them since you took the home off their hands? It would then be as if they never had anything to do with the home in the first place, but they would still be working with you for you to pay them the cost of the house back. a person would just be securing them the home and its paayment, just as they wouldn't charge themselves interest while holding it. Thanks to any answers!! I hope that made sense...

P.S. example:
This would be kind of like when car companies aren't doing too well in selling cars, so they give you an interest free loan. would they do this for a house?

Answer 1

No, they're not going to give you any sort of interest free loan. You can certainly apply to the same bank for a mortgage, but that transaction will be completely separate from your purchase of the home from the same bank.

And don't count on 'getting the home for less' either. While that occurs sometimes, I've also seen bank owned homes sell for considerably MORE than the bank's asking price.

Answer 2

Banks are more realistic about sale prices than individual sellers (no emotional attachment) and often have negotiated discount commissions from the brokers they list with, so you can often make a good deal on a bank owned repo. And they will usually be happy to give you the mortgage -- but it will not likely be on any more favorable than an arms length loan. However there are a couple of small items on which you may be able to save $$ if you take their mortgage: 1. They may waive the appraisal fee -- they already know the value; and 2. you may be able to save a couple of hundred on mortgagee title insurance, because they had a recent search done for the foreclosure. Any savings will be in hundreds of $$, not thousands.

Answer 3

You will not receive a discounted mortgage rate, and some lenders in my area will not lend at all on their REO's. Lenders are in a position to wait for a buyer to come to their price, despite what you are hearing in the media, I have never seen (in my area) an REO go for a small fraction of what was owed. Lenders don't need to "clear the inventory off the books" or whatever terms you may hear.

Lenders employ brokers to give them a broker price opinion or an appraiser to assess value, then they determine the asking price. Buying REO's can be a frustrating process, because the lenders operate on their schedule, at their pace, and frequently ignore any deadlines you put in your purchase offer contract.

Answer 4

Banks will not deal directly with buyers. You'll have to wait until the bank relists it for sale through a realtor. There may be title or other legal issues that are currently delaying the resale.

Answer 5

Could the bank sell for no interest?
yes. Likely? NO.
They sell money --or rent money.

CALL and ask them anything you want.

They are likely to accept 15% less than the last person paid and they
are likely to want 5+% interest.