I am a real estate agent in Ventura County, CA. Based on my experience, I would like to share my thoughts on this subject. In general bank-owned property can be a land mine. First of all, bank usually does not counter your offer, instead asking your best & highest. Secondly, bank often times attaches its own addendum to your offer, which ask you to waive your rights on lots of issues. READ CAREFULLY, since this addendum is written by bank's attorney for bank, NOT FOR YOU. When you find something wrong with the property, bank's attitude usually is : take it or leave it. Bank can prolong escrow without penalty. If buyer ask extension, bank will charge you per diem as high as $100 per day. It appears unfair to buyer. However you are getting a good deal, and you might think it worth it.
If you are considering to buy a bank-owned property (after foreclosure), I highly recommend you work with an experienced real estate agent.
Hope this helps...
Troop Real Estate
Mar 20, 2012