You can purchase property at a great discount through a Bank Owned or REO Foreclosure. When a foreclosing lender takes a property back it passes the property on to its REO (Real Estate Owned) department which arranges to sell the property.
Buying a bank owned property can be a complex purchase but an Accredited Real Estate Buyer’s Agent can put their years of experience to work to help you navigate the process and to negotiate the best bargain you can – keeping your financial circumstances and the worth of the property in mind.
Here are some of the advantages and disadvantages of purchasing a REO/Bank Owned property:
Some Advantages
- You can take your time deciding as there is no mandatory fixed time limit as there is in an auction.
- You will have an opportunity to really get a good look at the property to ascertain its condition and what repairs and maintenance may need to be done.
- The bank makes the arrangements to evict the former owners so there is no inconvenience or awkwardness for the buyer.
- Liens on the property aren’t a factor because the bank itself takes care of that.
Some Disadvantages
- A Bank/REO Owned property may be more expensive to purchase than one that is acquired during the pre-foreclosure phase. Even though the property is unsold, it is still unlikely that a bank will sell it at rock bottom prices. Sometimes the price fixed by the bank is more than the market value of the property. Your Accredited Real Estate Buyer’s Agent can best advise you on the property’s value as an opportunity.
- In many cases a bank will want to dispose off the property in an as-is condition. To protect yourself from having any nasty surprises your a good Accredited Real Estate Buyer’s Agent will put in an ‘inspection contingency’ condition. This is to give you the right to inspect the property and rescind your offer if the property is fails to measure up to.
- Banks are not required to issue a Property Condition Disclosure Statement. However, if a qualified, Accredited Real Estate Buyer’s Agent is involved, he/she will provide a Property Condition Disclosure Statement to you.
In purchasing a Bank Owned/REO property you will have to make your offer to the bank. Even though the auction was not successful the bank is still going to attempt to get the best price they can. When you make an offer, the bank will counter your offer with one that is generally higher than your offer. You will want to settle on a maximum price you are willing to offer and then make a final offer. Thereafter it will be put submitted for the bank’s approval after which a decision will be taken.
Purchasing an REO or bank owned property can be a complex purchase. As an Accredited Real Estate Buyer’s Agent I put my years of experience to work to help you navigate the process for a beneficial outcome. I can help you to negotiate the best bargain you can keeping your financial circumstances and the worth of the property in mind.
My website http://pope-realestate.com contains current, frequently updated listings of all foreclosures in Brunswick County (homes & land) as well as Wilmington, NC, Wrightsville Beach, NC and Carolina Beach, NC
For more information on these or any other foreclosures please contact Martha Pope:
email: martha@pope-realestate.com
phone: 910.619.7673
