Sacramento Real Estate Views

Why Bank Owned Homes Are Difficult To Finance

Seller’s Take the Path of Least Resistance

Most bank owned homes are challenged.  Generally they are not in good condition and the homes that are in good condition are receiving multiple offers.  The sellers of these homes would rather take a lower all cash offer than to even attempt to get a financed offer closed.

Add this to the fact that the lenders are more strict than ever in demanding that they asset they are loaning against is in good condition and who can blame them.  They want to make sure all of the safety hazards have been addressed and at a minimum the home is needs as little fix up as possible.

Unless you’re getting a rehab FHA loan, it’s tough out there especially for the first time home buyer.

The home I visited today was typical of the bank owned homes in the Sacramento real estate market.  If you have questions, please feel free to contact me and I’ll respond to your questions promptly.

Thanks for watching!

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Tags: sacramento foreclosed homes

This entry was posted on Monday, August 31st, 2009 at 8:38 pm and is filed under First Time Home Buyer Info, Real Estate Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Bruce Lemieux said at September 3rd, 2009 at 7:22 am

   Hey Rob – great video. Are you doing many FHA rehab 203K loans? If so, are the FHA appraisers coming up with reasonable values for the homes and for necessary repairs in your opinion? Thanks.

2. robsaxe said at September 3rd, 2009 at 7:46 am

   Hey Bruce! Thanks for the comment! I haven’t done any 203K loans lately but I do know that appraisers in our area are coming in with values lower than expected. In the past, everything appraised, unless it was clearly ridiculous, regardless of the agreed upon price. These days it’s a different story. I’ve had two transactions not appraised for the agreed upon value that required seller price adjustments. Thanks!

3. Wes Brown said at September 3rd, 2009 at 9:12 pm

   I just helped a couple purchase a foreclosure and yes it was a mess, but I have seen worse. In the end they were delighted and the since it had not major flaws during the home inspection the bank had no problem with the loan. Thank God they gave up on getting a great deal on a short sale (what a mess), but that’s another story.

4. robsaxe said at September 4th, 2009 at 1:50 pm

   Hi Wes,
   Thanks for the contribution and for visiting my site.
   Thanks!

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