Thursday, December 18, 2008

Bank Owned in Long Beach..Prepare for a journey

Getting a great deal on a bank owned/foreclosure property in Long Beach is certainly possible, although the journey may be different than you think. If you listened to the media you would think that you could walk down your favorite street, see a number of bank owned properties, offer them 10 cents on the dollar and have a home in a few days. Although I would love for that to happen for any of my customers, the reality is much different.

Buying Long Beach real estate that is bank owned is a great way to save money and get that home or condo that you have always wanted. Being prepared for the journey of buying a property from a bank will help to make the process a smooth one regardless of the agent that you choose to help you with it.

  1. Be prepared to lose - I know it sounds crazy, but there are certainly a good number of people out there searching and making offers on the best deals throughout Long Beach. The best priced bank owned homes can get anywhere from 6-30+ offers. So be prepared to lose a few times when making offers.

  2. "Double App" - The requirements of many of the bank owned listings requires that you apply for a loan using their recommended loan company or loan officer (often referred to as a "double app"). You don't have to use that lender to complete your loan, but in order for your offer to be reviewed you will often be asked to apply for a loan with the recommended lender. Having all of your documentation ready for those lenders will make your life much easier.

  3. Conditions may vary - Finding a home that is in the best neighborhood and that has been heavily upgraded for super cheap is not likely. Be prepared to find homes that need some work, but remember you will be saving some good money on the purchase.

  4. Delayed documentation - The bank is dealing with thousands of offers at a time, so they are often slow to return documentation that your lender is waiting on. Make sure you have the time in your contract to allow for some of these inevitable delays.

Being prepared for the journey makes it much easier. You could certainly win on your first offer and that would be great! Just in case though, keep the tips above in mind and you will get that great deal on a bank owned property in no time.

Related must reads:

  • Top 5 Bank Owned challenges

  • Looking for REO properties, try North Long Beach


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