Working with Banks

You don’t have to search too long to find bank owned homes in the Indianapolis Metropolitan area. There are plenty around town and more than likely some are really good deals. Banked Owned Homes or REO (Real Estate Owned) properties are homes which the owner defaulted on. The home has been foreclosed on, went to the Sherrif’s sale, and no one bought.

Now, the bank has it in it’s portfolio. I have heard banks don’t like owning real estate in this manner. I’m sure they like owning real estate, just not the real estate on their books as non-performing assets. I have also read banks are willing to assist those who have fallen behind on their payments. I’m not sure either of these statements are true. The banks and lenders I have worked with seem to stall every chance they get.

My team and I have represented several homeowners in the short sale process, as well as buyers who have made offers on bank owned property, only to have the bank thrawt our efforts to bring them a buyer and close the transaction. A few deals gone bad…….

* Clients home is listed as short sale and we submit an offer for $113,000. The bank never responds to the offer or our phone calls. The property is foreclosed on and offered for sale by the Sherrif. No takers! Bank then puts the home on the market for $89,500 and closes in three weeks.

* We represent the buyer of a home for $76,000. The bank does not have clear title. Our clients wait two months past the original closing date, only to find out the judge has still not signed the strict foreclosure paperwork. They decide to look for another home. Bank puts the home back on the market for $59,000.

* Again representing the buyer, the bank takes three weeks to turn on the water so my client can perform inspections. With one week before closing, the bank refuses to repair major components of the home; no compensation or reduction in price to cover the costs.

My client walked, bought another home, and the bank owned home is still on the market. And to think, we deposit our money for safe keeping with some of these institutions………Hmmmm…