Are You a Canadian Interested in Buying a Bank-Owned Property?

Let CLA Realty Help You Understand The Process

How many times have you said to yourself, “I sure wish I bought that house when…” or “Hindsight is 20/20?” Be smart and take advantage of the incredible deals in Phoenix while the Canadian Dollar is strong and the real estate market has a great selection of bank-owned homes. They are also commonly referred to as "Foreclosure properties" and "REO" properties.

Here are 5 simple steps to owning the investment/dream home you've always wanted and can now easily afford:

Step One: Identify the property or properties that you would like to buy.

Step Two: Submit a contract on the property. You will need to wire your earnest deposit (generally about 10% of the purchase price if cash or 1% if financed) and have a letter from a local lender stating that you are conditionally approved for a loan. If you are paying cash, you’ll need a letter from your financial institution stating that you have the funds necessary to purchase the home or a bank statement that shows the availability of funds.

Step Three: The bank will either accept, reject or counter your offer. If multiple offers are received on the property, then they usually will accept the highest offer, but many times they will just ask for your "Highest and Best" offer. They will not tell you what the highest offer is.

Step Four: Once you have an approved and accepted offer from the bank you will usually have 10 days in which to do your “due diligence”. This means you will need to visually inspect the property. It is also highly recommended that you have a licensed Home Inspection Company do a complete review of the condition of the home. The banks will generally not do any repairs, but you will at least know what you’re getting into and depending on the cost of any necessary repairs, if it’s still worth your while to go through with the home purchase. From experience, most things that are found are cosmetic. Frequently, new carpet, paint and appliances will need to be put in, but not always.

Step Five: If you decide to continue with the sale of the home after the 10 days is up, you will then have about 2 – 4 weeks to complete the purchase.

Want to learn more? Here is how the entire escrow process works in Arizona. Or, just contact Colleen Lynch at 1-800-985-3672 if you have any questions.