Bank-owned properties have certainly become a big part of the real estate market in Cuyahoga County. And, yes, while it has a negative feel to it, it is reality. Working in this segment of the market does not involve traditional negotiation. The banks have come up with very structured processes that eliminate much of the negotiating and entail a more systematic approach to purchasing homes. It has become a specialized area for real estate agents working with banks and investors. Not only are the most savvy of investors playing in this market — it has created a learning ground for the novice as well.

Some areas of Cuyahoga County have more bank-owned properties than others. Many properties are priced well below market value due to their condition. Being priced low is what seems to take away much of the negotiation. The work that needs to be done to bring these homes back up to market value will vary from house to house. Some of these homes have not been maintained for many years. They may need any combination of typical repairs, such as a new roof, furnace, hot water tank, windows, flooring or fresh paint.

 

Some homes are broken into by vandals who steal the copper piping, and in the process leave behind considerable damage. When this occurs, more often than not, these houses are deemed uninhabitable. Such homes generally drop so far below market value that banks will not provide a mortgage loan for them. These are the properties many investors buy for cash. Some sell for as little as a moderately priced car.

 

If you have questions about foreclosure or bank-owned properties, please contact your lender or real estate professional.