Buying a Bank-Owned Home

By Barb Schlinker

One of the most common questions I often get asked if there is a long wait to buy a bank-owned home. The short answer is not usually. Buyers can purchase bank-owned homes in about 30 days. Purchasing bank-owned homes has some unique differences from a regular real estate purchase. The first step in understanding how the process will go depends on what bank or government entity owns the home.

As an example to purchase homes owned by HUD (Department of Housing and Urban Development), the buyer must find a real estate broker who is certified to sell HUD homes and can help them submit their initial bid online. Those homes are sold completely as-is and no repairs can be made on them before closing.

On homes owned by Fannie Mae and Freddie Mac, the buyer must sign their specific agreements in order to purchase those homes. Some government entities such as Fannie Mae and Freddie Mac will do some repairs on the home to include new carpet, fresh paint, and new appliances in order to appeal to owner-occupant buyers. In most cases bank-owned or government-owned homes do represent good bargains.

Another common assumption that I hear from buyers is, "The banks just want to get rid of it, so wouldn't they take a low offer?" In today's market, offers substantially lower than list price are not usually successful for the buyers. Banks and government entities will commonly price their homes to sell. And in many cases there are several offers at once on those homes, so the buyer has to make their best offer to have a chance at their offer getting accepted.

Barb Schlinker, Employing Broker for Parker St. Claire Reality is an expert in bank-owned sales.


Barb Schlinker
Broker – Parker St Claire Realty
719 499 3334
1155 Kelly Johnson Blvd.,St. 111, 80920
Colorado Springs, Fountain, Monument, Pueblo
REO Broker, Certified Default Advocate, CDPE
Woman Owned, Veteran Owned
Veterans Association of Real Estate Brokers VAREP, National Board Member
Author: ‘7 Things You Must Know to Avoid Foreclosure and Keep the Bank from Taking Your Home"

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