Bank Owned will Hamper Housing Recovery?

I was reading the other day that our nation’s largest banks and mortgage lenders own more than $872,000 homes and are ready to repossess another 1,000,000. Yep another 1,000,000!

This staggering number of homes must have economists concerned because higher inventories of distressed homes can depress overall home values. Asheville Real Estate bank owned could take lenders three years to sell their foreclosed home inventory.

Indeed, the high number of lender owned homes stands to cost banks $40 billion in additional losses as they’re forced to sell these homes at sharp discounts over the next two years.

Personally I have found that lenders have no idea what their homes are worth and often over price them. Many of the offers that I have made they do not even respond and leave my buyers not knowing what to expect. With all the extra paper work and lack of response is creating a very bad taste in our industry.

 Bank Owned Asheville Homes also can sit in limbo for nearly two years. It can take 400 days just for lenders to foreclose on the home and then 176 days, on average, to sell it. So by the time you show the property it is in very bad condition and lenders have not adjusted the price for the damages.

Is it worth trying to buy a bank owned property? I would have to say yes, but if buyers are waiting to find that perfect home and are expecting to find it as a bank owned they most likely will not find it. But if they are will to take an investors approach and look at the value they can enjoy purchasing a home at a good value.