8 things to know if you are planning to buy bank-owned houses

Planning to purchase a bank-owned house or property? If you do not know about what is a bank-owned house and what are the things that go into buying a bank-owned property, then read on to get insights on the same. Here we have provided nuggets of information about different terms on bank-owned properties, how advisable it is to purchase one of these, and more.

Answered By Betty Parker | 2 years ago
  • Q: Can I buy a bank-owned house with an FHA loan?

    The Federal Housing Authority (FHA), insures mortgage loans that assist buyers with lesser cash. These loans are used to buy any type of property. An FHA loan can be used to even purchase a foreclosed property.

  • Q: I want to purchase a bank-owned house. Is it cheaper or expensive?

    The bank-owned houses are comparatively cheaper than other houses in the neighborhood. This is one of the reasons why these houses attract buyers. On an average, a bank-owned property comes to around 30 to 35% cheaper than similar homes, which are sold by the owners.

  • Q: Is it advisable to buy a bank-owned house or property?

    It is always better to research about the property before purchasing it. If you are buying a foreclosed house or property at an auction, then you might have to pay the cash amount on the same day. This is slightly risky as you will not be able to inspect the property before buying it. So, be sure whether you want to buy a foreclosed property or not.

  • Q: Is it possible to negotiate with a bank on a foreclosure?

    A foreclosure takes place once the owner defaults the payment of the loan. Banks are sometimes ready to negotiate on the sale price of the bank-owned houses, but this may or may not be the case always.

  • Q: What do you mean by bank-owned houses?

    Bank-owned houses or properties are those which are taken under the inventory of a bank, once the owner has defaulted to pay the mortgage loan. These houses are later sold at a discounted price at an auction or otherwise.

  • Q: What is a trustee deed?

    As a legal document, a trustee deed is used to transfer the title of ownership from the owner to the bank. This is done once the foreclosure procedure is completed.

  • Q: What is the Trans Date?

    The Trans Date is the date on which the property was purchased at the transfer value.

  • Q: What is the transfer value of a bank-owned house?

    The buying cost of the property is the transfer value of a bank-owned house. This is the price which was registered the last time the property transferred ownership.

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