Weighing the pros and cons of buying foreclosed Texas homes from banks
You can potentially save thousands of dollars on a new home by buying foreclosed Texas homes from banks. The bank typically owns the home because it didn’t bring the reserve price at auction. Therefore, the lender wants to sell as quickly as possible, not for the biggest profit.
Bank-owned properties are commonly called real-estate-owned (REO) homes. One perk of buying a REO home is that they are rarely still occupied by the former owner or tenant. Another advantage of buying foreclosed Texas homes from banks verse from an auction is that the bank may do some renovations and repairs to the home and negotiate with the Internal Revenue Service (IRS) to removal tax liens.
When buying foreclosed Texas homes from banks, remember that not all bank-owned properties are good bargains. You should do your homework prior to making an offer on an REO home. You want to compare the bank’s price with the property’s market value. You should also factor in needed renovation costs.
When you’re buying foreclosed Texas homes from banks, be aware that each bank is unique and has specific procedures. Most large banks have a foreclosure department that manages the growing inventory of foreclosures. People working in these departments are specifically trained to price and sell foreclosures. They are also instructed to make counteroffers if your offer is low. If you want the bank to reduce the price of a foreclosure, you need to present documentation like a home inspection that demonstrates the reasons the price should be reduced.
Buying foreclosed Texas homes from banks has a couple of disadvantages. First, your offer must go through several individuals to get approved so it may take some time to buy the home. Second, foreclosed Texas homes from banks homes are usually sold as-is and without warranty. If you get a home inspection prior to purchasing the home, you can avoid the surprise of major problems.
As you can see, buying foreclosed Texas homes from banks requires some patience and research. To make the process easier, check out RealtyNow to find real estate professionals who can show you REOs for sale in your area.