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There are a couple of key differences to the sales process
when looking for bank-owned property.
First, you will need a pre-approval
letter before submitting any offer. The lender's won't even
look at an offer that doesn't have a pre-approval letter with
it. Some banks will even require that you be pre-approved
by them (you don't have to use them - but they want to make
sure your approval is legitimate). If you are making a cash
offer, you will very likely be asked to provide proof of funds
for the closing.
Second, you will have to sign an addendum
to the purchase & sale agreement. These addendums vary bank
to bank - I've seen one page addendums, and I've seen 16 page
addendums. A quick summary of the addendum: the property is
sold "as is" and the bank/owner calls all shots of the transaction.
Here are a few examples of the addendums:
Example 1 
Example 2
Example 3
Bank-owned properties are sold "as is"
with no guarantee or representation about any condition. It
is imperative that you obtain any inspections that you can
to learn as much about the property as possible. Get a good
home inspection, talk with someone at the local town hall,
do whatever you can to get as much information as possible.
The only information you're going to have… is what you get!
Another exception to bank transactions
is that the buyer almost always pays the full transfer tax
stamp. In New Hampshire, there is a $15 per thousand transfer
tax stamp. In a traditional purchase, it is customary for
the buyer & seller to split that tax. For example, on a $200,000
house, the tax would be $3,000, or $1,500 each side. When
buying bank-owned property, the buyer foots the bill.
Here is a partial list of bank-owned
property in the North Conway area. I have not found a way
to generate a list automatically, so I add to this list manually.
I'm sure I've missed a few, but I try to get them all.
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