If you’re looking to purchase a bank owned home here in Phoenix or elsewhere, there are a few givens with which you’ll have to deal:
1) There will be no Sellers Property Disclosure Statement. While occupancy is not necessary for the form to be required, the lenders truly don’t know what has happened in the home’s history. And while they should know if anything’s happened since they took ownership, the knowledge is sketchy at best.
2) The property is being sold As Is.
What does As Is really mean? I’m glad you asked.
There’s a 10-day inspection period built into the Arizona Residential Resale Purchase Contract, during which a buyer should have the home inspected by a professional home inspector and also checked for termites by a termite inspector. This also is the time for any specialty inspections the buyer may want – roof, pool, mold (most home inspectors can say if there’s evidence of a problem but they’ll almost universally suggest bringing in a specialist for the final verdict.)
At the end of the 10 days, the buyer has the option of accepting the house as is, canceling the contract and regaining their earnest deposit or asking for repairs.
Wait, Jonathan. This is an As Is purchase. The bank already said they won’t make repairs.
Yes, that’s true. Unless it’s not. While rare, some lenders have made repairs to ensure the deal gets done. These usually aren’t the “light bulb in the kitchen’s burned out” variety but it can happen.
Bank owned homes are a gamble in the sense that you never know if the previous owners took their misfortune out on the house before they left. But that doesn’t mean someone buying the property is completely helpless in the buying process.
[tags]Phoenix real estate, AAR Purchase Contract, bank owned homes[/tags]