Saturday, July 11, 2009

New Bank Owned Property in Gilroy

Seven year old home at 8801 Zinnia Street in Gilroy just came on the market. This home has 4 bedrooms, 3 baths and 1892 square feet, is located on a 5343 square foot lot and is an attached home. Photos show it in good condition both inside as well as out. The price is very attractive at $341,900 - this is a very competitive price range and a good price for this home. So we'll watch and see how fast the status changes to pending. This bank is requiring proof of the earnest money deposit as well as a preapproval letter from a lender but is not requiring a buyer to use their lending department (some banks want a buyer to be preapproved with them but can't insist someone uses their company). Most banks will include an addendum with terms that protect the bank and limit the rights of the buyer - make sure your read the fine print! It usually applies to timelines for the buyer to perform and clarifies the limited knowledge a bank would have about a property. Transactions with banks are often as-is but I am told it doesn't have to be that way. Most banks will pay for repairs, just not up front so it depends upon whether the listing agent has the ability to deal with getting the money ahead of time.

My 2 cents - Make sure you read that addendum and don't be so quick to give up your rights.

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