Buying Bank Owned property in Arizona

These 4 Tips for buying bank owned properties, things you  should know before deciding to look at them.  We all have seen the enormous influx of bank owned properties, but do you know the down side of buying a bank owned property?

There are Risks involved, but you can minimize these risks just by doing some due diligence.

1.) When signing the bank addendum, (a document the banks add on to the actual contract) make sure you realize what type of deed you are going to receive.  If it is not a General Warranty Deed, make sure you are getting the home and you fully protected with the most title insurance you can.  Most banks will issue you a Special warranty Deed, in Arizona.  If this is the case, you should look into extending your insurance policy to cover any gaps.  

2.) Because the bank acquired the property through foreclosure, the bank will not be able to provide you with the (SPDS)Seller's Disclosure or the (CLUE Report) Insurance disclosure.  So, be aware this means you know nothing about the history of this property...it could have been flooded, had a leak in the roof, or anything else that might be of concern to you.  So this means you need to do some leg work to find out what you can about this property.  Use this to help; http://www.aaronline.com/documents/buy_advis.pdf  I suggest to try to get a Home Warranty on the home if you can...I call it a safety net for the first year.

3.) Make sure you know your inspection time and do all inspection you are concerned with at that time.  I.E. Home, Pest, termite, Pool or Roof inspection, even check the square footage- whatever is your concern. Usually, they give you 10 days for inspections and to lock your rate in to purchase the home (yea, there is a provision for this in the standard Arizona contract).  But some bank addendums will modify this an only allow you 5-7 days.  that is critical to know, as after that period you will only be able to walk away with your earnest money if you don't qualify for the loan.

4.) Understand, that when asking for concessions from the bank this amount will be provided at the time of closing.  So you will need cash in hand to pay for inspections and appraisal(s) and sometime even the HOA disclosures as the HOA is now in some cases charging an upfront fee for these. 

If you use this guide, you will have a good chance to find a good deal in the bank owned properties for sale in Arizona. 

Of course, if you want more information I would be happy to help you can call me at 480-570-1912, email me at BeeryRealty@gmail.com

You can find me on the web at two websites,  http://www.AzBuysHomes.com or at http://www.AzSellsHomes.com

Take care,
Elaine Beery
United Broker's Group

3 Great tips for buying HUD properties in Arizona

Well, the summer is just about here and not to sound too cliché...but our housing market is getting hot especially with our HUD Properties.

Here are 3 things buyer's need to  know about buying  HUD properties;

1.)    HUD uses a blind bidding system, and the original list price is the price HUD determined is the market value by an appraisal, so if you want to get a loan for this property, you can't offer more than that price, as the lender's will not give you any more money that that price.  Doesn't mean you can't offer more but just be prepared to come out of pocket with the amount over.  

[i.e. list price $100,000, you offer $104,000 you will be coming to the closing table with your closing costs and $4,000 + your regular down payment of 3.5% for FHA (owner occupant) or 10-20% for conventional]. 

2.)    HUD gives owner occupants a 10 day time period at the beginning of each listing, so they are not having to bid against investors right off the bat.  On the flip side, that means investors can't have a agent/broker put an offer in for them until the end of the 10 day period. 

3.)    HUD sells all their properties As Is, but will allow you to do an inspection but you must get permission from HUD to turn on the utilities at your cost, they give you a 72 hour window to make this happen so having your inspector(s) lined up would be preferable.  If items found that will hinder your ability to get a loan on the property, Hud will either fix, or reduce the price accordingly.  (they determine which they will do) If it is something that isn't a loan concern it is the buyer's responsibility to repair after they purchase it. 

Well that is my tip for you today and I hope you find it useful...as always, if you need more information about this topic or you just want to get some help buying a home in Arizona.  Please call or email me.  Or come by my website to see what's available...I look  forward to hearing from you. 

Take care,


Elaine Beery
United Broker's Group
480-570-1912