Bank owned properties in Big Bear are continuing to come on the market for sale at a steady pace. Don’t expect that to change anytime soon. In the month of September 2008, there were 41 properties that went back to the bank. And there have already been 10 so far this month.
While a few of these properties are already on the market for sale, the majority of them are still “in the listing process” with the banks and should be on the market in the coming weeks/months.
What do the banks do between the time they take the property back and then list it for sale?
One of the first things they will do is make sure the property is vacant. If not, there are certain hoops they have to go through in order to properly evict the occupant and or the occupant’s belongings. A lot of times the previous owner will leave items behind that they does not have any value to them.
Assuming the property is vacant, banks will generally get an appraisal on the property along with a broker price opinion to help them decide how much they want to list the property for. A lot of buyers think the bank price is really negotiable when it normally is not, especially if they have this proof to substantiate the price.
Banks will also do some title work on the property during this time to make sure they can transfer clear title.
Some banks will start doing misc. repairs (paint and carpet) and clean up work on the property during this time frame, prior to getting the property on the market for sale. Banks are motivated to get the property sold and will do the things necessary to accomplish that.
After the property has gone through this process is typically when the bank will put the property on the market for sale. Even when it goes on the market, some banks will wait 48 to 72 hours before they will respond to any offers.
Not all banks act the same. Some follow this process and some don’t. There are many other things to consider as well if you are looking at a bank owned property. Take a look at a couple of my previous articles about buying a bank owned property in Big Bear for more details.