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BUYING A BANK OWNED HOME IN SANTA CRUZ

I have helped many clients over the past few years buy bank owned homes in Santa Cruz.  Dealing with the banks and asset managers when buying a bank owned or forclosure home is a little different than a 'normal sale'.

Here are a few tips for those looking to buy a bank owned home in Santa Cruz:

*  This is perhaps the most important thing to understand when buying a bank owned home - Do any and all inspections! research permit history, road/water association dues . . . The bank is the seller but since they have never lived in the home they can't tell you a whole lot about it.  As a buyer's agent I help my clients organize all inspections and connect them with helpful advisers like land use planners, title company, and geologists that really help in researching all aspects of a bank owned home in Santa Cruz. 

*  The bank will usually have their own addendum which is attached to the regular California Purchase Agreement and all terms in the bank contract supercede the CAR contract.  Many of the terms in the bank's addendum are not favorable to a buyer of a bank owned home.  The bank usually asks the buyer to waive many rights.  Some of the banks terms may not even be legal in California, it is always advised to consult a lawyer for specifics about the bank's addendum.

*  Contingencies - When you buy a bank owned home in Santa Cruz or anywhere in California you will usually have a contingency period in order to do your inspections and secure your loan.  Many times the bank will counter with a very short physical contingency period - I have had them insist on a 5 day contingency period, which can be done but on some country properties where you have well and septic inspections in addition to normal inspections that can be a challenge.

* Another thing to watch out for:  Passive Contingency Release - In the normal California Purchase Agreement contingencies are only released when a buyer signs a contingency release form.  In many of the bank's addendums they change the contingency to a passive release which means that after a certain day if you do not contact the bank/seller to tell them otherwise your contingencies are automatically released and your deposit is in jeopardy if you do not complete the sale.

* If you do find condition issues during your inspection of a bank owned property, you always have the right to ask for repairs or a credit - but you must document what you are asking for with inspection reports and contractor bids.  When I ask for a credit for a buyer I always submit supporting documents to make a case to get the concession, and it usually works.

You can get a substantial discount when you buy a bank owned home in Santa Cruz, and with an experienced Realtor to help you navigate the process you will have success! 

Go here to view a current list bank owned homes for sale in Santa Cruz and contact me for more information about how to buy a bank owned home.