Bank Owned and Foreclosed Condos in Long Beach
In any given market there are opportunities to find great values in properties that banks have had to take, due to the ability of an owner to make payments. When one is unable to pay this is commonly referred to as a “foreclosure”. These properties can also be referred to as an REO (real estate owned) or bank owned. Contrary to the belief of many though, it usually doesn’t involve going directly to the bank or purchasing at the court steps.
Buying a bank owned condo in Long Beach
Foreclosure Info +
Due the fact that purchasing a bank owned property at auction can have more risk (no inspection periods, buying all cash, etc.) many people actually purchase bank owned properties through traditional real estate agents. Many banks and asset managers’ contract with local real estate brokers to have them sell homes and condos in a given city.
By searching through the Long Beach MLS you can often locate these bank owned properties. You can even use your own buying agent to help you negotiate the best possible value on your REO condo.
Realities of buying from the bank
Many people have the vision of purchasing a property from the bank at “pennies on the dollar”. Although you will generally save on your purchase of a foreclosed property there are some realities that you need to take into consideration before you write up a purchase agreement.
- Property Condition – The bank has taken these properties back from people who could not pay their mortgage so those same people often could not afford to do any upkeep to the property. Expect to see that work needs to be done. Often home improvement jobs are half-done so you may need to finish up work before it feels livable.
- “As-is” – The banks lose a great deal of money on a foreclosed property. They don’t feel like making the property any better after such a loss, so they will generally sell the property completely “as-is” except for local codes that they must comply with (generally strapping of the water heater and smoke detectors). You are saving on the purchase price, but you end up usually needing to make some of your own repairs.
- Missing Items – Since the bank never lived in the condo, you may find you have to track down some common items that normally the seller passes to you. Bank owned condos in Long Beach usually are missing common items like garage door openers and mailbox keys. Although these are usually small items it’s important to have on your checklist when you get close to your move-date.
Buying a bank owned condo in Long Beach can be fun as long as you know what to expect. We are certainly here to guide you in your search for a bank owned condo in Long Beach. Use our Hot List to find the bank owned condo that is right for you or start searching now using our Free Long Beach MLS.
If you have that burning question about the realities of purchasing a foreclosed property, call us today at 562-989-7111 and one of our professional real estate agents that has executed purchases of bank owned condos will be happy to help.