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Looking for REO property or foreclosures in Southport, Oak Island, Caswell Beach, Boiling Spring Lakes, St. James or Winding River?
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Just as with any home purchase, your smartest move is to hire a professional real estate agent. Should you have questions about real estate in Southport, North Carolina, call me or send me an e-mail. |
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What is an REO?"REO" or Real Estate Owned are houses which have been through foreclosure that the bank or mortgage company currently holds. This is different than 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 added during the foreclosure process. The buyer must also be able to pay with cash in hand. And on top of all that, you'll receive the property 100% as is. That might comprise of prevailing liens and even current occupants that need to be thrown out.
A bank-owned property, conversely, is a more tidy and attractive transaction. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The lender 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.
Do be aware that REOs may be exempt from typical disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are knowledgeable. By hiring Coldwell Banker Sea Coast Realty, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.
Are REO properties a bargain in Brunswick County?It is frequently presumed that any REO must be a good deal and an opportunity for guaranteed profit. This isn't necessarily the case. You have to be cautious about buying a REO if your intent is make money. While it's true that the bank is often eager to sell it soon, they are also motivated to get as much as they can for it.
 When considering the value of a foreclosure, you need to look closely at 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 foreclosures. Still there are also many REOs that are not good buys and may not be money makers.
Time to make an offer?Most mortgage companies have a department dedicated to REO that you'll work with while buying REO property from them. Commonly 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 regarding the condition of the property and what their process is for accepting offers. Since banks typically 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 withdraw the offer if you find it. If, as a buyer, you can provide documentation showing 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 type of real estate offer.)
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 offer a counter to the counter offer. Be aware, you'll be contending with a process that most likely involves multiple people at the bank, and they don't work evenings or weekends. It's not uncommon for the process of offers and counter offers to take days or even weeks.
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