Interested in REO property or a foreclosure in Asheboro?
Just as with any property purchase, your wisest move is to hire a professional real estate agent.
Should you have questions regarding real estate in Asheboro, North Carolina, call us
or send us an e-mail
What's an REO?
"REO" or Real Estate Owned are properties which have been foreclosed upon and are presently possessed by the bank or mortgage company. This is not the same as a property up for foreclosure auction.
If you buy 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 ready to pay with cash in hand. Finally, you'll accept the property entirely as is. That could consist of existing liens and even current residents that need to be removed.
A bank-owned property, by contrast, is a more tidy and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. Now the bank owns it. The lender will see to the removal of tax liens, evict occupants if needed and generally arrange 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 example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement,
a document that ordinarily requires sellers to disclose any defects of which they are aware.
By hiring The Real Estate Shoppe, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.
Am I assured a low price when buying a bank owned property in Asheboro?
It is sometimes believed that any foreclosure must be a good buy and an opportunity for easy money. This isn't always true. You have to be cautious about buying a REO if your intent is to make money. While it's true that the bank is usually anxious to sell it fast, they are also motivated to minimize any losses.
Look closely at the listing and sales prices of comparable homes 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.
The bargains with money making potential exist, and many people do very well buying and selling foreclosures. However, there are also many REOs that are not good buys and may not be money makers.
Ready to make an offer?
Most mortgage companies have staff 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 usually 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 discover as much as you can about what they know regarding the condition of the property and what their process is for accepting offers. Since banks usually 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 demonstrating 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 real estate offer.)
After you've submitted your offer, it's customary for the bank to counter offer. At this point it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer.
Be aware, you'll be dealing with a process that most likely involves a group of 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.