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Will a bank owned home be willing sign a deed over if we agreed to release them from all liability?

Florence, AZ |
Filed under: Real estate

There is a home that is currently a foreclosure, but is currently in what is considered a flood zone area and cannot be insured until the property is fixed; approximately $40K, therefore, the bank will not sale the home due to liability. Would there be a way to obtain the home (deed) and maybe even the property for free if we agreed to release the bank from all liablity? It has been off the market since 2009. Looking for a solution.

Attorney Answers 1

Posted

You are not likely to get the property for free but you can certainly negotiate with the bank for a reduced price based upon the problems with the property and the potential liability of the bank because of the flood zone issues. Have you tried to make an offer on the property before? Or have you just heard that generally the bank is not looking to sell the property?

Most bank owned properties are listed with a broker/realtor, so you should be able to open up a dialogue with someone to see what the bank is willing to do to liquidate the asset.

Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. I am licensed in Arizona and can only provide general comments on matters outside of Arizona law. Actual legal advice can only be provided after a direct consultation in which all of the relevant facts are considered before providing a response.

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Asker

Posted

Thanks Mr. Kavanagh. We are currently shortselling our home and are looking around our area (want to stay in the same school district/location) for rentals and saw this home that was obviously abondoned, and assumed it was a foreclosure. We found the lot number, and info, looked it up, and it was actually currently posted on zillow.com (I think that's the name of the site), but when called the real estate company who had this posted, this was the info we recieved. It's not for sure as far as how promising this info is, but we found out which bank owned it and just got the thinking we may be able to get this for a lot cheaper (or free) because of the liability and the fact that the bank may not want to invest a lot of money into a home that they have already taken a loss on, and with most likely the inability to get back the 40K or so they would have to put into it in order to sell it...or they may sit and wait for the market to go back up and then invest the money into it...but, here's hoping.

Douglas Garth Edmunds

Douglas Garth Edmunds

Posted

Nothing wrong with hoping ... or trying. Just manage your expectations. It certainly sounds like you might be able to get a great deal if you are willing to take on the liability for the repairs. The hardest part is likely going to be finding someone with the lender bright enough to understand your offer.

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