Monday, September 22, 2008

Top 5 Long Beach Bank Owned Challenges

We have been helping clients get some great deals on bank owned homes and condos here in Long Beach. As we have been doing this, the prices have been great, but there are some practical challenges that we thought we should share so you can be prepared for the journey of purchasing Long Beach real estate that is bank owned.

  1. Mailbox Keys - When you get a condo, the previous owner usually just passes on their complete set of keys. In the case of a bank owned property you usually will not get key to your mailbox. I know it's a small price to pay to save thousands, but be prepared for this inconvenience as you will often have to contact the HOA to see if they can help.
  2. Garage Door Opener - It's about a $35 or so, but you will need to get the codes to program your remote correctly. The bank usually won't have the code, so ask nicely to see if the HOA can help.
  3. History of the Property - Make sure to have your home inspector go through the property thoroughly because the bank won't know much. Since they haven't occupied the property they don't have to give you a TDS (transfer disclosure statement).
  4. Delayed Closing - The banks are very stringent on making sure you meet your timelines in the contract, but they don't seem to follow the same rules. The banks may be slow to get paperwork back (especially items like escrow instructions) so be prepared to do some waiting at the end.
  5. Short Inspection Periods - The standard purchase contracts in California allow for a 17 day inspection period. The banks all create their own contracts and usually have periods from 5-10 days. So be prepared to get your inspections done quickly!

Knowing these items before you step into an escrow for a bank owned property can certainly make life a bit less surprising.

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