Can I purchase a bank owned property if a family member was the prior owner?
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Can I purchase a bank owned property if a family member was the prior owner?
I want to buy a particular bank owned property that is currently on the market. I am interested in buying this particular property because I am very familiar with it’s history and condition since a family member was the prior owner before they lost it in a foreclosure. Now that the property is owned by the bank and on the market, is there anything preventing me from submitting an offer or any legal issues I should take into consideration before purchasing it?
Asked on November 18, 2011 under Real Estate Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If a property once owned by a family member was foreclosed upon by its lender (the bank you are writing about) and you now wish to buy this property that is now owned by the bank, per a foreclosure deed there is nothing preventing you from making an offer on it legally or even morally.
You need to realize that the bank is not in the business of holding and selling real estate and as a result, would probably be very motivated in trying to sell it below its current market value. Rather than hiring a real estate agent to make an offer on the property, you should consult with a real estate attorney about making an offer on it. I would also speak with the family members who once lived in it about any structural issues concerning it.
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