Interested in REO property or a foreclosure in 13016 Eastfield Road?
Purchasing a bank-owned property is not something to be taken casually.
For more information, just contact me through my site or e-mail me. I'm happy to answer questions you have about real estate foreclosures.
What's an REO?
"REO" is Real Estate Owned. These are properties which have been foreclosed upon that the bank or mortgage company currently owns. 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 accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. To top everything off, you'll accept the property entirely as is. That could include prevailing liens and even current denizens that may require expulsion.
A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The bank will deal with the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.
Take notice that REOs may be exempt from typical disclosure requirements.
For example, in Nevada, it is optional for foreclosures to have a Property Disclosure Statement,
a document that ordinarily requires sellers to tell you about any defects they are informed of.
By hiring Tanya Lovejoy-Capers, Broker, ABR, CNHS, CRS, e-PRO, you can rest assured knowing all parties are fulfilling Suite 346, Huntersville, NC state disclosure requirements.
Is REO property in 13016 Eastfield Road a bargain?
It's frequently thought that any foreclosure must be a steal and an opportunity for guaranteed profit. This isn't always the case. You have to be very careful about buying a REO if your intent is profit from the sale. While it's true that the bank is often eager to sell it fast, they are also looking to get as much as they can for it.
Look carefully at the listing and sales prices of competing properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in.
The bargains with money making potential exist, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may lose money.
Prepared to make an offer?
Most lenders have staff dedicated to REO that you'll work with when buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.
Before making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about their knowledge concerning the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unknown damage and withdraw the offer if you find it.
As with making any offer on real estate, your offer may be more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
Once you've made your offer, you can expect the bank to respond with a counter offer. From there it will be your decision whether to accept their counter, or make another counter offer.
Your deal might be final in one day, but that's rare. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Tanya Lovejoy-Capers, Broker, ABR, CNHS, CRS, e-PRO is accustomed to these situations and will work to ensure there are no undue delays.
Look carefully at the listing and sales prices of competing properties in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in.
The bargains with money making potential exist, and many people do very well flipping foreclosures. But there are also many REOs that are not good buys and may lose money.