Good news for 
Do you need some answers about buying a bank owned Home in Anthem, AZ?
Q: Will the Bank accept FHA or VA financing?
A: Yes, if the property will qualify for this type of financing. The bank will usually accept it. If the property does not meet the qualification for this financing the Bank will not repair the property to meet the requirements. Remember, the property is being sold “AS IS”, which means it its present condition. When a property is in poor condition a bank/seller may only accept cash offers.
Q: Since I am a cash buyer will banks always choose my offer over others even if I offer a lower price?
A: Not necessarily. Banks will usually get every dime out of the property that they can. They will take their chances on a financed offer if it is significantly higher at least the first time around. If it falls through and days on market are adding up they may then look for a cash buyer to turn the property quickly. Just because you are a cash buyer don’t think that you can low ball the price. The Bank's price the properties market value.
Q: How long does it take for a bank to respond to an offer?
A: That is anybodies guess. It will totally depend on the bank and their work load. It can be anywhere from 2-10 days. Remember they are closed on evenings and weekends.
Q: Will the bank honor the buyer’s deadline for response to the offer?
A: NO. They may simply let an offer expire. The timeline in the contract means nothing to the bank.
Q: Why does the buyer have to sign all the documents including the Bank’s counter offer before the seller signs?
A: REO protocol dictates that the Buyer sign all required documents (Purchase Contract, any Counters, and Bank Addendums ) before the seller signs. Due to the high volume of homes they are managing, the Bank only wants to sign one complete contract rather than numerous counters.
Q: Will a bank always provide an additional Bank Addendum that supersedes the Arizona Purchase Contract?
A: Yes, 99.9% of the time. I only had one bank that did not. The listing agent told me it was a very small bank. Other than that I have never heard of a bank not providing a Bank Addendum. This addendum is typically 7-20 pages long.
Q: Once we have a verbally accepted offer, when does the inspection period start?
A: Any Fannie Mae owed home the inspection period will start upon verbal acceptance of the offer by the bank. Other banks will start the inspection period when the Purchase Contract, any Counters and Bank Addendum are signed by all parties and you have a fully executed contract. It will depend on the Bank.
Q: Is the inspection period always 10 days.
A: No, often the bank will shorten it to 7 days especially for cash buyers.
Q: Will the Bank provide a Sellers Disclosure or Insurance Claims History Report?
A: No, the Bank has never lived in the property and has no knowledge of the property.
Q: When I make an offer on a Bank Owned property do I have to be prequalified by a lender?
A: Yes, you may even have to be pre-qualified by the bank that owns the property. Not all banks require this though. An LSR (Loan Status Report) is required from a lender and I always encourage my clients to provide proof of funds of down payment to make their offer stand out from others that a bank may be looking at.
Well, There are a few answers to some of the questions that you may have regarding Buying a Bank Owned home. Now why Anthem, AZ?
Anthem, Arizona, in my opinion, is one of the best values in the valley. It is an award winning master planned community with more amentities that you could dream up such as Golf, tennis, pools, community center, dining rooms, reception facilities, water park, fitness and other classes, community park, hiking, ampatheater in the park, baseball fields, soccer fields, skate park, roller rink, Outlet Mall shopping, and the list goes on. Take a Tour of Anthem, AZ . Visit some Bank Owned Homes.
Please call me with any further questions and to schedule a showing.
