If you’re looking at purchasing a bank owned home here in the Phoenix real estate market, there are some quirks you’re going to want to be aware of right from the get go:
1) Homeowners Association transfer and other fees – the lender’s almost certainly not going to pay these, so it’s probably not worth asking the question. Better to “deduct” what you think the total will be from your offer than make a request you know out of the box isn’t going to happen.
2) Home warranties – Freddie Mac is offering a two-year home warranty to owner-occupied, primary residences. Second homes, vacation homes, investment properties, it’s not going to happen. And that’s in line with the vast majority of lenders who will not pay for a home warranty.
3) Repairs – with rare exceptions, the lender will not make any. There’s often a provision in the lender addenda for termite damage to be repaired, but this is far from a sure thing depending on the lender. Here, however, I still say it’s worth asking for major repairs to give the lender a chance to save a deal.
4) Verbal/e-mail counter offers – pixels are the closest thing you’ll see to a concrete written counter offer.
5) Electronic signatures – some lenders accept these, some don’t. Hopefully your agent knows which is which.