What is a Bank Owned Property?
A bank owned property is a property that has been foreclosed on...has gone to auction and the bank has taken it back and now owns it. Often times the bank will make certain repairs to make the property more attractive. Once the property has gone through the foreclosure process, most liens attached to the property will automatically be wiped off or the bank will settle with the lien holders. This is an advantage over buying a pre-foreclosures.
Often times bank owned properties are priced at Fair Market Value, although they aren't in fair market value condition. Make sure you work with a Realtor that is willing to negotiate the correct market price for the property condition.