Foreclosed Homes In Albuquerque NM | Bank Owned Homes For Sale

Many buyers ask me if you can negotiate the price on Albuquerque Foreclosures. The answer is absolutely. This is the one area you have flexibility in purchasing a foreclosed home. Banks will not negotiate on terms, conditions, or repairs, it is critical to negotiate the right price.

Let the buyer beware, many foreclosures will need work and the banks will not agree to pay for any repairs, in most cases. I highly recommend that you have a full home inspection if you are considering the purchase of an Albuquerque Foreclosure. Buyers will be required to pay for the home inspection in most cases.

A small percentage of foreclosures are in move in ready condition. The majority of foreclosures will need some work, this will range from minor repairs to complete remodels. Some foreclosures may have been vacant for a long period of time and problems may be present due to lack of routine maintenance. The previous owners may not have performed routine maintenance because of their distressed situation. It is important for buyers of foreclosed homes to factor in repair costs into the home buying budget.

Buyers of Albuquerque foreclosed homes will be required to accept the banks terms and conditions of the sale.

Sellers will normally provide a Property Disclosure Statement about their home in a typical transaction. A property disclosure provides some history and facts about the home. Banks will not provide a property disclosure as they have very little knowledge of the property. It is the buyers responsibility to determine the history and facts about the home.

Homes must meet certain requirements established by lenders to qualify for a loan. Lenders are not concerned about cosmetic fixes like new paint. However, missing flooring, missing appliances, inoperable heating, inoperable cooling, problems with electrical or problems with plumbing can keep a home from getting a new loan. It is best to discuss any problems with your banker to determine if the banker will provide you a loan prior to making an offer.

It is critical to have a complete Title search and verify all liens and judgments have been cleared. A Special Warranty Deed only guarantees Title for the time the seller (Bank) has owned the property, you should absolutely purchase Title Insurance. The Title Company will work with the seller to clear up any past liens or judgments.

Some buyers assume since the home is a foreclosure, it must be a good deal. This may not be the case as banks are trying to sell their homes near market value. There may be similar homes on the market that meet your needs that are a better value.

Write up the offer when you find the right home at the right price. There is a saying in real estate, sleep on it and you may not sleep in it. This is absolutely true on homes that are priced right as there are many buyers looking for a great deal! It is not uncommon to see multiple offers on homes priced right.

Don’t be surprised if your real estate agent tells you the bank has received multiple offers on the home. The bank will request all buyers to submit their highest and best offer.All buyers will get one opportunity to modify their offers and submit their best offer. The bank will review all offers and work with the best offer as determined by the bank.

Banks will typically respond to offers within 2 to 3 business days. The entire negotiation process could take one to two weeks. It will take an additional 30 to 45 days to close the transaction if financing is required to purchase the home. Cash transactions can close much faster.

The bank will require buyers to sign a lengthy addendum after the offer is accepted by the bank. The addendum is the banks way of protecting themselves from any type of lawsuit that may arise in the future. The bank will not typically negotiate any of the terms or conditions in the addendum.

This all may sound a little intimidating, but don’t let that scare you. Foreclosures may save you thousands of dollars on your purchase. This is a very manageable process if you are using the services of a real estate agent experienced in acquiring Albuquerque Foreclosures.