Bank-Owned Listings FAQ

  • Bank-owned properties are cheaper, right? 
    • Not necessarily.  The bank has already paid out a lot of money in court costs, attorney fees, possibly eviction expense, and now they are paying Realtor fees.  They are going to list the property at market value. 
  • How is buying a Bank-Owned property different from buying a privately owned property? 
    • Banks will typically require their own contract or will add their addenda to the standard purchase contract.  These contracts or addendas remove a lot of liability from the banks during the sale. 
    • Banks will often offer to pay escrow fees and owner's title insurance premiums if you use their chosen escrow company. 
    • Banks are not required to provide a seller's real property disclosure. 
    • If the bank offers an owner-occupant "first look" period, and an owner-occupant buys during this period when investor's are not allowed to compete, the bank may put a restriction on resale in the deed, preventing the new owner from re-selling the property for a year or so.
  • How can I make my offer most appealing to the bank? 
    • Unfortunately, this is not always clear.  Some banks look ONLY at price and simply take the highest offer.  Some banks look for the cleanest offer and expect to see zero contingencies or seller-paid expenses.  
  • There is a house in my neighborhood that is bank owned?  Why isn't it on the market yet? 
    • Banks will often take "deed in lieu" of foreclosure.  When this happens, it hasn't gone through the regular foreclosure process so there could be other liens or issues involved.  The bank may be working to clear title before they can list it. 
    • Some banks have too many houses to list or don't want to flood the market. 
  • How can I contact the bank about a house they own? 
    • Good luck!  If you figure this one out, please let me know!
  • How can I see all the bank-owned listings on the Big Island? 

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