Buying REO property or a foreclosure in King?


	Purchasing a bank-owned property is not something to be taken lightly. For more information, just contact us through this site or e-mail us. We're happy to answer questions you have regarding real estate foreclosures.

What is an REO?

"REO" or Real Estate Owned are houses which have been foreclosed upon and are now owned by the bank or mortgage company. This is different than 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 prepared to pay with cash in hand. To top everything off, you'll accept the property completely as is. That possibly will involve current liens and even current residents that may require expulsion.

A bank-owned property, on the other hand, is a much cleaner and attractive option. The REO property did not find a buyer during foreclosure auction. Now the lender owns it. The lender will handle 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 instance, in California, banks are not required to give a Transfer Disclosure Statement, a document that normally requires sellers to disclose any defects they are informed of. By hiring Piedmont Group Properties, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Am I assured a bargain when buying a bank owned property in the Piedmont?

It is occasionally presumed that any REO must be a steal and a chance for guaranteed profit. This isn't necessarily true. You have to be prudent about buying a repossession if your intent is make money. While it's true that the bank is usually eager to offload it promptly, they are also motivated to get as much as they can for it.

Piedmont Group Properties has experience to share with foreclosures and bank owned properties in King, North Carolina

Piedmont Group Properties has experience to share with foreclosures and bank owned properties in King, North Carolina

When considering what to pay for REO property, 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. The bargains with money making potential exist, and many people do very well flipping foreclosures. However there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most banks have a department 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 usually hire a listing agent.

Before making your offer, we will contact either the listing agent or REO department at the bank and discover as much as we can about their knowledge concerning 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 withdraw the offer if you find it. If, as a buyer, you can provide documentation showing your ability to secure financing, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This holds for any type of real estate offer.)

After you've presented your offer, you can expect the bank to counter offer. From there it will be your choice whether to accept their counter, or make another counter offer. Understand, you'll be dealing with a process that usually involves several 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.