What 3 Kinds of Bank-Owned Properties Can You Buy?

Thai Nguyen Real Estate Podcast

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Today we are excited to discuss the three types of bank-owned properties you can buy here in Seattle. Each one is a little different, and could be a great option for you depending on your situation.

1. Short sale

When the owner of a home can no longer pay their mortgage, one option they have is a short sale. At this point, their home is worth a lot less than the home’s actual value. When you submit an offer on a short sale, the owner will sign off on it and it will then be submitted to the lien holder. The lien holder will then send someone out to make sure the home is priced at market value. One downside about short sales is that they often take 60 days and can take as long as 180 days to close.

2. Traditional bank-owned property

These are properties where the bank has taken ownership of a home, and puts the home back on the market. These homes are first come, first serve. However, make sure you do your inspection and understand what kind of work the property will need once you buy it.

3. Auction property

These properties are usually sold at a discount. This is a great option for cash buyers who have the money already. We can also work with lenders to get buyers a loan for an auction. You’ll have to put 10% down, but the mortgage company will cover the rest. There’s a chance you may be able to get the property for less than your loan.

There are a lot more details and nuances regarding these three types of properties. If you’re interested in buying a home like this, give us a call or send us an email. We’d love to hear from you!