Questions to Ask when Buying Bank Owned Property

what are the questions to ask a realtor when wanting to buy bank owned property?

2 Answers

I would want to know if there is still a tenant in the property and if so under what lease terms.  Believe it or not with some government backed loan types the government is trying to be more "friendly" and is allowing tenants to stay in the home after foreclosure.  You need to know lease term, rent amount and other factors relating to this occupancy.

I would want to know if title insurance is available to cover properties under "special warranty deed" provided by lender owned sales.  There is a enhanced level of title insurance available for such properties.  Your agent can ask the closing attorney or title company about this. 

I would make sure your agent ensures the offer provides for your having the right to have the property inspected with a right to at least withdraw and get your deposit returned if the inspection reveals significant problems.

QUESTIONS FOR YOUR REAL ESTATE AGENT

Here is a list of questions you should ask a prospective real estate agent

when you begin the homebuying process.

  • Are you familiar with the neighborhood where I want to buy? (Often,

real estate professionals specialize in certain geographic areas.)

  • Are you fluent in my language? (If you prefer to do business in a

language other than English, you may want to use a bilingual agent.)

  • How many buyers and sellers are you representing now? (If your

agent is very busy, you may not get personalized attention.)

  • Will you provide me with recent references? (You may want to speak

with a recent homebuyer who worked with the agent.)

  • How many home sales have you closed in the past year? (This will

give you an idea about how successful the agent is.)

  • How long have you worked in the real estate business?(This is important if you prefer working with someone with a lot of experience)

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