Looking for REO property or a foreclosure in Burlington?
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 glad to address questions you have about real estate foreclosures.
What's an REO?
"REO" or Real Estate Owned are properties which have been foreclosed upon that the bank or mortgage company currently owns. This is not the same as real estate 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 receive the property completely as is. That could involve existing liens and even current occupants that need to be expelled.
A bank-owned property, by contrast, is a much neater and attractive deal. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will deal with the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.
Do be aware that REOs may be exempt from normal disclosure requirements.
For instance, in California, banks are not required to give a Transfer Disclosure Statement,
a document that usually requires sellers to tell you about any defects of which they are knowledgeable.
By hiring Massey Real Estate, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.
Is REO property in Burlington a bargain?
It's frequently believed that any foreclosure must be a steal and a chance for guaranteed profit. This isn't always true. You have to be cautious about buying a repossession if your intent is to make money off of it. Even though the bank is usually anxious to sell it quickly, they are also motivated to get as much as they can for it.
Look carefully at the listing and sales prices of competing properties in the neighborhood when making an offer on an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in.
There are bargains with potential to make money, and many people do very well flipping foreclosures. However, there are also many REOs that are not good buys and may lose money.
All set to make an offer?
Most banks have a department dedicated to REO that you'll work with in buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.
Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about their knowledge regarding the condition of the property and what their process is for taking offers. Since banks usually sell REO properties "as is", you may want 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, 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.
After you've made your offer, it's customary for the bank to respond with a counter offer. From there it will be your decision whether to accept their counter, or submit another counter offer.
Realize, you'll be contending with a process that usually involves a group of people at the bank, and they don't work evenings or weekends. It's typical for the process of offers and counter offers to take days or even weeks. Massey Real Estate is accustomed to these situations and will work to ensure there are no undue delays.