Friday, August 17, 2007

Panorama City Bank Owned

I recently sold a home in Panorama City which was bank owned (REO). The previous owner had purchased the home, made some improvements and found his/herself unable to afford the mortgage payment of this home. The previous owner had also made-off with the kitchen - so there was no kitchen in the home when my clients previewed it for the first time.

My clients were fortunate enough to find and purchase this bank owned which was owned by Wells Fargo with no money down (Stated income / stated assets). That's right, people can still buy a home in the San Fernando Valley with no money down but you should have a credit score at least in the low 700's. We were also able to get $12,000 credit from the bank for buyers none recurring closing costs. This way, when escrow closed, the buyer would receive all of their initial money back and pay nothing out of pocket.

The most difficult aspect with working with a bank owned home is that the bank was slow to open escrow. It took approximately 3 weeks to open an escrow. Normally, it takes less than a day. Also, response times took 1-3 business day. The bank also provided their own paperwork which was not standard with the Realtor forms we use as agents.

Keep in mind when you purchase a bank owned home, your usually buying the home AS-IS. But in our situation, the bank had taken the steps to fix the major problems of the house and the previous owner had made upgrades which saved my buyers tens of thousands of dollars. The bank also installed brand new cabinets and granite counter-tops.

It took close to 3 months to close the property. So keep in mind that if you are considering buying a bank owned home, expect a delay from 60-90 days as banks are inundated with short sales and REO's.

More articles concerning bank owned homes:

San Fernando Valley - Buying Bank Owned Homes


Buying Foreclosure Properties Has It's Rewards & Risks

If you are considering buying a bank owned home in the Panorama City and surrounding cities including; Burbank, Valley Village, North Hollywood, Van Nuys, and Lake Balboa, contact a professional Realtor who knows how to work with Bank Owned homes.
Written by: Richard M. Johnston

San Fernando Valley Bank Owned Specialist

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