Interested in REO property or a foreclosure in Hendersonville?
Savvy consumers will turn to a seasoned pro when considering the purchase of a foreclosed property.
For more information, simply contact me
through my site or e-mail me
. I'm happy to answer any questions you have about real estate foreclosures.
What is an REO?
"REO" means Real Estate Owned. These are homes which have been through foreclosure and are currently possessed by the bank or mortgage company. This differs from 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 willing to pay with cash in hand. And on top of all that, you'll get the property completely as is. That could include standing liens and even current denizens that need to be evicted.
A bank-owned property, conversely, is a much neater and attractive deal. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The lender 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.
Note 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 typically requires sellers to disclose any defects they are knowledgeable of.
By hiring Amanda Hill, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.
Am I guaranteed a bargain when investing in an REO property in Hendersonville?
It is sometimes thought that any REO must be a steal and a possibility for guaranteed profit. This simply isn't true. You have to be cautious about buying a REO if your intent is to profit from the sale. Even though the bank is often eager to sell it soon, they are also motivated to minimize any losses.
Look carefully at the listing and sales prices of similar homes 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.
It is possible to find REOs with money-making potential, and many people do very well buying foreclosures. Still, there are also many REOs that are not good buys and may not be money makers.
Prepared to make an offer?
Most lenders have staff dedicated to REO that you'll work with while buying REO property from them. Normally 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 what they know about the condition of the property and what their process is for taking 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 unseen damage and retract the offer if you find it.
As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.
After you've made your offer, it's customary for the bank to make a counter offer. From there it will be your choice whether to accept their counter, or submit another counter offer.
Realize, you'll be working with a process that most likely involves several people at the bank, and they don't work evenings or weekends. It's quite common for the process of offers and counter offers to take days or even weeks.