What You Need to Know When Buying a Bank Repo Home

Nearly 1,000 Bank Repos listed for sale in the west end of the Inland Empire offer both opportunities and challenges for home shoppers. Below-market prices seem irresistible, but do your homework to avoid unpleasant surprises later on.

What Bank Repos Are -

A Bank Repo is a property that was foreclosed and has been deeded to the company that held the unpaid loan. Often the home had been offered as a "short sale" as the homeowner sought to sell the property at a loss during the foreclosure process.

Lenders are reluctant property owners. The home that once had been an asset - when the homeowner was making monthly payments - becomes an expensive liability when the property is vacant, needs regular maintenance, and is vulnerable to vandalism and theft.

To restore the property as an asset again, the lender often prices the home below local market values to attract a well-qualified buyer. If you are a cash buyer, offer more than the listed price, and are willing to accept the property "as is," your offer is much more likely to be well received than if you have severe credit issues, ask for closing costs, and submit a long list of repairs.

Most home buyers stand somewhere between the two extremes. They need both a home loan and a realistic view of what will be needed. The latter is especially important because the lender, unlike the previous homeowner, does not need to disclose potential problems.

Bank Repo Pros -

•· Listed Prices are considerably lower than comparable properties that are not Bank Repos.

•· Quick Escrow is possible because property already is vacant.

•· There may be new carpeting, paint, and possibly appliances to attract fast offers.

•· Property tax rates are set at 1 percent of the appraised value at the time of purchase - and will stay low, thanks to Proposition 13, even when property values increase.

Bank Repo Cons -

•· Low listing prices can trigger multiple offers, pushing the sales price upward.

•· Lack of usual disclosures puts a greater burden on the home buyer to discover potential problems - from cracks in the foundation to roof damage, from missing pipes to missing equipment.

•· A professional home inspection, always a good idea, is essential. Depending on the buyer's observations, other inspections may be desirable too.

•· Alterations to the property may not have been permitted. When in doubt, pay a visit to the city building department.

•· Lenders don't wait. If you don't have loan approval, or submit all the required documents, your offer won't be considered.

How I Help You

As a full-time, full-service Realtor, I provide personal service to every client, studying the local market daily, searching for homes to show clients, previewing listings and making sure my clients are ready to act when they find that one, "right" house.

I will help you sort through the Bank Repos and other available homes to find the one that fits your needs and financial comfort zone, whether you are looking for a home you can move right into, one that needs cosmetic repairs or one that challenges your imagination and construction skills.

When we find a suitable home for you, we will work together to present an offer acceptable to the seller. Then I will assist you throughout the inspection period and work closely with your lender for a smooth escrow and on-time closing.

Let's talk about your needs and how you can capitalize on the Bank Repos now on the market. Call me at (909) 261-3541 or e-mail me at ila@tarbell.com. I serve clients buying and selling real estate in the Inland Empire cities of Chino, Claremont, Fontana, La Verne, Montclair, Ontario, Pomona, Rancho Cucamonga, San Dimas and Upland.