Buying a bank owned/Foreclosed (REO) home can be different than buying a home through a normal sale. Here are some of the most common questions and answers when buying a REO home.
Bank Owned FAQ
A few things can happen, if one is clearly better than the other (remember although banks do look at the number they also look at terms in the contract) they can take it. Or they can send something to each one of the people that has made them an offer and ask for their highest and best offer.
No, banks are concerned about how much they can get from each property. They want the highest amount possible. However, once the bank has signed and accepted your offer, if another higher offer came in, that offer would be considered a “back up” and would not take priority over your offer.
As stated above, banks will most likely not make any repairs to the property as the buyer is buying the home AS-IS.
Not always, inspection periods can vary. Although the buyer can still do an inspection the seller (bank) will most likely not make any repairs to the property and will often times not respond to the request to make repairs.
No, if there has been no response, the bank may let the offer expire. Sometimes they will not respond at all.
The response times vary depending on the bank. Some may respond within 48 hours, but some take 7 to 10 business days. Remember, banks are not open on weekends or holidays.