Making an offer on REO property or a foreclosure in Shallotte?


	Making an offer on a bank-owned property is not something to be taken casually. Should you have any questions about real estate in Shallotte, North Carolina, call me or send me an e-mail.

What is an REO?

"REO" or Real Estate Owned are properties which have gone through foreclosure and are now possessed by the bank or mortgage company. This is different than real estate up for foreclosure auction. Kinlaw Realty has experience to share with foreclosures and bank owned properties in Shallotte, North Carolina

Kinlaw Realty has experience to share with foreclosures and bank owned properties in Shallotte, North Carolina

If you buy 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 ready to pay with cash in hand. Finally, you'll get the property totally as is. That could include current liens and even current residents that may require eviction.

A bank-owned property, on the other hand, is a more tidy and attractive option. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The lender will deal with 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.

Note that REOs may be exempt from standard disclosure requirements. For instance, in California, banks are not required to give a Transfer Disclosure Statement, a document that usually requires sellers to make known any defects of which they are knowledgeable. By hiring Kinlaw Realty, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Am I assured a good deal when purchasing a bank owned property in Shallotte?

It is frequently believed that any foreclosure must be a good buy and a chance for guaranteed profit. This frequently isn't true. You have to be cautious about buying a repossession if your intent is profit from the sale. While it's true that the bank is typically eager to sell it soon, they are also looking to minimize any losses.

Kinlaw Realty has experience to share with foreclosures and bank owned properties in Shallotte, North Carolina

Look closely at the listing and sales prices of comparable 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 buying foreclosures. Still there are also many REOs that are not good buys and may lose money.

All set to make an offer?

Most lenders 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 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 most commonly 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.)

Once you've made your offer, you can expect the bank to counter offer. At this point it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Be aware, you'll be working with a process that usually involves multiple people at the bank, and they don't work evenings or weekends. It's quite common for there to be days or even weeks of negotiating back and forth. Kinlaw Realty is accustomed to these situations and will work to ensure there are no undue delays.