Buying REO property or a foreclosure in Charlotte?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. Should you have any questions about real estate in Charlotte, North Carolina, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are homes which have been through foreclosure that the bank or mortgage company currently holds. This differs from a property up for foreclosure auction. Homes with Heart USA, Inc. has experience to share with foreclosures and bank owned properties in Charlotte, North Carolina

Homes with Heart USA, Inc. has experience to share with foreclosures and bank owned properties in Charlotte, North Carolina

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. To top everything off, you'll accept the property totally as is. That may comprise of existing liens and even current residents that may require eviction.

A bank-owned property, on the contrary, is a much neater and attractive option. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.

You should be aware that REOs may be exempt from typical disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that typically requires sellers to reveal any defects they are knowledgeable of. By hiring Homes with Heart USA, Inc., you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Is REO property in Charlotte a bargain?

It's commonly presumed that any REO must be a good deal and a possibility for guaranteed profit. This isn't always the case. You have to be very careful about buying a repossession if your intent is make money. Even though the bank is typically anxious to offload it promptly, they are also looking to get as much as they can for it.

Homes with Heart USA, Inc. has experience to share with foreclosures and bank owned properties in Charlotte, North Carolina

When pondering 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 flipping foreclosures. But there are also many REOs that are not good buys and may not be money makers.

Prepared 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.

Before 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 concerning the condition of the property and what their process is for taking offers. Since banks typically sell REO properties "as is", you may want to include an inspection contingency in your offer that gives you time to check for hidden 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 counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer. Understand, you'll be contending with a process that generally involves a group of people at the bank, and they don't work evenings or weekends. It's typical for there to be days or even weeks of going back and forth. Homes with Heart USA, Inc. is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.