Buying REO property or a foreclosure in Fayetteville?


	Purchasing a bank-owned property is not something to be taken casually.

What is an REO?

"REO" is short for Real Estate Owned. These are properties which have completed the foreclosure process that the bank or mortgage company presently holds. This differs from real estate up for foreclosure auction. StageCoach Realty has experience to share with foreclosures and bank owned properties in Fayetteville, North Carolina

StageCoach Realty has experience to share with foreclosures and bank owned properties in Fayetteville, North Carolina

When buying 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 willing to pay with cash in hand. And on top of all that, you'll accept the property totally as is. That possibly may include standing liens and even current residents that need to be removed.

A bank-owned property, by contrast, is a more tidy and attractive proposition. The REO property did not find a buyer during foreclosure auction. Now the bank owns it. The lender will see to the elimination 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 standard disclosure requirements. For instance, in California, banks do not have to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to disclose any defects they are informed of. By hiring StageCoach Realty, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Is REO property in Fayetteville a bargain?

It's frequently believed that any foreclosure must be a good buy and a possibility for guaranteed profit. This often isn't true. You have to be very careful about buying a repossession if your intent is to make money off of it. While it's true that the bank is often eager to offload it quickly, they are also motivated to get as much as they can for it.

StageCoach Realty has experience to share with foreclosures and bank owned properties in Fayetteville, North Carolina

Look carefully at the listing and sales prices of similar homes in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. The bargains with money making potential exist, and many people do very well buying 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 a department dedicated to REO that you'll work with when buying REO property from them. To get their properties advertised on the local MLS, the lender will often 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 regarding the condition of the property and what their process is for accepting offers. Since banks almost always sell REO properties "as is", you may want 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. As with making any offer on real estate, providing documentation showing your ability to secure financing 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 make a counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer. Your deal might be settled in one day, but that's rare. 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. StageCoach Realty 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.

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