Interested in REO property or a foreclosure in Burlington?


	Foreclosed upon and bank owned property purchases require the assistance of an experience professional. If you have any questions regarding real estate in Burlington, North Carolina, call me or send me an e-mail.

What's an REO?

"REO" means Real Estate Owned. These are homes which have gone through foreclosure that the bank or mortgage company presently possesses. This is not the same as a property up for foreclosure auction. Coldwell Banker Triad Realtors has experience to share with foreclosures and bank owned properties in Burlington, North Carolina

Coldwell Banker Triad Realtors has experience to share with foreclosures and bank owned properties in Burlington, North Carolina

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees amassed during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you'll receive the property totally as is. That could comprise of current liens and even current tenants that may require eviction.

A bank-owned property, by contrast, is a much neater and attractive proposition. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will handle 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.

Note that REOs may be exempt from standard disclosure requirements. For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement, a document that usually requires sellers to tell you about any defects they are aware of. By hiring Coldwell Banker Triad Realtors, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Are REO properties a bargain in Alamance County?

It is occasionally thought that any REO must be a good buy and a possibility for easy money. This isn't always the case. You have to be prudent about buying a repossession if your intent is to make money off of it. Even though the bank is often eager to sell it quickly, they are also looking to minimize any losses.

Coldwell Banker Triad Realtors has experience to share with foreclosures and bank owned properties in Burlington, North Carolina

Look closely at the listing and sales prices of competing homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. It is possible to find REOs with money-making potential, and many people do very well flipping foreclosures. Still there are also many REOs that are not good buys and not likely to turn a profit.

Prepared to make an offer?

Most lenders have staff dedicated to REO that you'll work with while buying REO property from them. To get their properties advertised on the local MLS, the lender will typically use a listing agent.

Before making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know concerning the condition of the property and what their process is for accepting offers. Since banks almost always 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. As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've presented your offer, you can expect the bank to make a counter offer. Then it will be your choice whether to accept their counter, or submit another counter offer. Your deal could be settled in one day, but that's usually not the case. Since offers and counter offers usually give the other party a day or longer to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. Coldwell Banker Triad Realtors is accustomed to these situations and will work to ensure there are no undue delays.