Date: 10 Oct 2009 Comments: 0

Bank Owned purchases are very similar to Commercial property purchases in which you have a certain amount of time to do your inspections and you may back out of the contract with in that timeframe. Usually, 10-15 days at most. Short Sales are a little different…..there are two schools of thought. One states that you do no inspections and pay no money until you have an approval from the bank. No skin in the game concept. The other school believes that you do the inspections up front prior to the bank approval and then do a re-inspect upon approval. This concept allows for a buyer to see if there are any hidden issues with the house prior to waiting a possible 60-90-120 days for an approval. Also, if there are any issues with the property, they are now documented and they can be presented to the bank along with the offer to substantiate a discount from market value. All in all it is the commitment that one places on what they do as to what they get!