Looking for REO property or a foreclosure in Holden Beach?
Purchasing a bank-owned property is not something to be taken casually.
For more information, you can contact me
through my site or e-mail me
. I'm glad to answer any questions you have regarding real estate foreclosures.
What is an REO?
"REO" or Real Estate Owned are homes which have completed the foreclosure process that the bank or mortgage company now possesses. This is different than a property up for foreclosure auction.
When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accrued during the foreclosure process. You must also be able to pay with cash in hand. And on top of all that, you'll receive the property totally as is. That may include existing liens and even current occupants that may require removal.
A bank-owned property, on the contrary, is a more tidy and attractive option. The REO property didn't find a buyer during foreclosure auction. The lender now owns it. The bank will attend to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.
You should be aware that REOs may be exempt from standard disclosure requirements.
In California, for example, banks are exempt from giving a Transfer Disclosure Statement,
a document that usually requires sellers to disclose any defects they are informed of.
By hiring Mary T. "Beth" Suggs, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.
Am I assured a bargain when investing in an REO property in Holden Beach?
It's frequently assumed that any REO must be a good deal and a possibility for guaranteed profit. This simply isn't true. You have to be very careful about buying a REO if your intent is to profit from the sale. Even though the bank is often anxious to sell it promptly, they are also looking to minimize any losses.
When contemplating the value of a foreclosure, carefully analyze comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale.
It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. Still, there are also many REOs that are not good buys and may not be money makers.
Time to make an offer?
Most mortgage companies have a department dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will typically use a listing agent.
Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about what they know about the condition of the property and what their process is for accepting offers. Since banks most commonly sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for unknown damage and terminate the offer if you find it.
If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This is generally true for any type of real estate offer.)
After you've presented your offer, it's customary for the bank to counter offer. Then it will be your decision whether to accept their counter, or make another counter offer.
Realize, you'll be contending with a process that most likely involves several people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of negotiating back and forth. Mary T. "Beth" Suggs is accustomed to these situations and will work to ensure there are no undue delays.