Interested in REO property or a foreclosure in Wilmington?


	Savvy consumers will turn to a seasoned pro when considering a foreclosed property. For more information, just contact me through my site or e-mail me. I'm happy to answer any questions you have about real estate foreclosures.

What is an REO?

"REO" is an abbreviation for Real Estate Owned. These are properties which have been foreclosed upon that the bank or mortgage company presently owns. This is unlike real estate up for foreclosure auction. HIGH TIDE Realty Team of Coastal Properties has experience to share with foreclosures and bank owned properties in Wilmington, North Carolina

HIGH TIDE Realty Team of Coastal Properties has experience to share with foreclosures and bank owned properties in Wilmington, North Carolina

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 ready to pay with cash in hand. To top everything off, you'll receive the property 100% as is. That could comprise of standing liens and even current residents that may require removal.

A bank-owned property, on the other hand, is a more tidy and attractive option. The REO property was unable to find a buyer during foreclosure auction. The lender now owns it. The lender will take care of the elimination of tax liens, evict occupants if needed and generally prepare 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 California, banks are exempt from giving a Transfer Disclosure Statement, a document that usually requires sellers to reveal any defects of which they are knowledgeable. By hiring HIGH TIDE Realty Team of Coastal Properties, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Are REO properties a bargain in Wilmington?

It's occasionally believed that any foreclosure must be a good buy and an opportunity for easy money. This often isn't true. You have to be very careful about buying a repossession if your intent is make a profit. Even though the bank is usually anxious to sell it soon, they are also looking to get as much as they can for it.

HIGH TIDE Realty Team of Coastal Properties has experience to share with foreclosures and bank owned properties in Wilmington, North Carolina

When considering the value of REO property, carefully analyze 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. There are bargains with potential to make money, and many people do very well buying and selling 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 often hire a listing agent.

Before 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 concerning the condition of the property and what their process is for accepting offers. Since banks usually sell REO properties "as is", it's often prudent to include an inspection contingency in your offer that gives you time to check for hidden damage and retract 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 real estate offer.)

After you've made your offer, you can expect the bank to make a counter offer. From there it will be your decision whether to accept their counter, or make another counter offer. Your deal might be settled in one day, but that's usually not the case. 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. HIGH TIDE Realty Team of Coastal Properties is accustomed to these situations and will work to ensure there are no undue delays.