General Question

AshlynM's avatar

If you want to buy a new house or condo, can't you just say you want to buy it now instead of bidding on it?

Asked by AshlynM (10562points) April 16th, 2010

Does there have to be bidding and having the bank sit on the offers? Can you just say you want to buy it right now instead of waiting to hear back from the bank?

Or can a buyer deal directly with a bank? Is it necessary to deal with a real estate agent?

This is regarding a bank owned property.

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6 Answers

thriftymaid's avatar

No. They have to go through certain procedures for REO sales.

DarkScribe's avatar

If it is offered for tender and not at a finite price you will have little option.

PandoraBoxx's avatar

The buyer can arrange pre-qualification with a bank before they start looking for a house. This means the bank agrees that they to lend you up to a certain amount of money before you start looking, and that can make the buying process go a little faster. However, when you buy a house using a mortgage to finance it, you and the bank own the house together. Your share is the equity, and over time as you pay down the mortgage, your share of ownership becomes greater.

With regards to bank-owned property, does the bank own it as a result of a foreclosure? If they do, you will want to make sure you have an independent title exam run on it, because when you buy a home, you acquire any outstanding liens against it. This is why a title exam is run at the time of purchase. In general, the interest of the bank that is handling your financing and your interest is the same, because you own the property together. The bank that is handling your financing is going to want to assess the risk on securing a loan with that piece of property.

You have to deal with the listing agent, as that is who is representing the bank real estate holdings.

thriftymaid's avatar

@PandoraBoxx This question is about foreclosure/REO properties. There are procedures that have to be followed in addition to the regular financing.

mollypop51797's avatar

There’s a lot more to it than just getting the house, even in this economy. Don’t even get me started.

bummer's avatar

You can say it loud and clear. Make sure you are talking to the person who can make a decision. If you have difficulty getting someone’s attention, call me!

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