
The property will often become bank-owned because the homeowner was not able to keep up with the mortgage. If they were not able to pay for something as important as their mortgage then it is very unlikely much money has been recently spent on the upkeep of the home and so it may be in some state of disrepair. It is not uncommon to also find that the home has been stripped of anything somewhat valuable or be filled with garbage and vandalized.
Naturally, you will have a look around the property before deciding whether or not to buy it and, while this will give you some idea of its condition, it will not reveal everything. The only way to find out its true state is to have the home inspected. Your real estate agent may try to dissuade you from spending the money on a home inspection, seeing that you would buy the property “as is”, but, it is much better to know just what will be involved and how much money will be required to get the property to a livable condition, and then make your decision based on the facts.
To review, then, a bank-owned property could be a good investment but make sure the decision you make is based on a knowledge of the home's true condition.