Buying REO property or a foreclosure in Goldsboro / Wayne County, NC?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. For more information, you can contact me through my site or e-mail me. I'm glad to answer any questions you have about real estate foreclosures.

What's an REO?

"REO" stands for Real Estate Owned. These are houses which have completed the foreclosure process and are now held by the bank or mortgage company. This is not the same as real estate up for foreclosure auction. Prudential The McMillen Real Estate Group has experience to share with foreclosures and bank owned properties in Goldsboro, North Carolina

Prudential The McMillen Real Estate Group has experience to share with foreclosures and bank owned properties in Goldsboro, North Carolina

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. The buyer must also be willing to pay with cash in hand. And on top of all that, you'll get the property entirely as is. That possibly will involve standing liens and even current denizens that may require removal.

A bank-owned property, on the contrary, is a much neater and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will attend to the elimination of tax liens, evict occupants if needed and generally prepare 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 Nevada, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to reveal any defects of which they are aware. By hiring Prudential The McMillen Real Estate Group, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Is REO property in Goldsboro a bargain?

It's frequently thought that any foreclosure must be a bargain and a chance for guaranteed profit. This often isn't true. You have to be cautious about buying a repossession if your intent is make money. While it's true that the bank is typically eager to offload it fast, they are also motivated to minimize any losses.

Prudential The McMillen Real Estate Group has experience to share with foreclosures and bank owned properties in Goldsboro, North Carolina

When considering what to pay for REO property, 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 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 lenders have staff dedicated to REO that you'll work with in buying REO property from them. To get their properties advertised on the local MLS, the lender will frequently contract with a listing agent.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and learn as much as you can about their knowledge about the condition of the property and what their process is for getting offers. Since banks typically 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 hidden damage and cancel the offer if you find it. As with making any offer on real estate, providing documentation proving your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

After you've submitted your offer, it's customary for the bank to respond with a 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. Your transaction could be final in one day, but that's usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Prudential The McMillen Real Estate Group is accustomed to these situations and will work to ensure there are no undue delays.