Interested in REO property or a foreclosure in Cary?


	Just as with any home purchase, your wisest move is to hire a professional real estate agent. If you have questions regarding real estate in Cary, North Carolina, call me or send me an e-mail.

What's an REO?

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

Fonville Morisey Realty has experience to share with foreclosures and bank owned properties in Cary, 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. The buyer 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 might consist of prevailing liens and even current denizens that need to be expelled.

A bank-owned property, on the other hand, is a much cleaner and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will attend 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.

Note that REOs may be exempt from typical disclosure requirements. For example, in California, banks do not have to give a Transfer Disclosure Statement, a document that ordinarily requires sellers to disclose any defects of which they are aware. By hiring Fonville Morisey Realty, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Am I assured a bargain when investing in a bank owned property in Cary?

It is occasionally assumed that any REO must be a good deal and a possibility for easy money. This often isn't true. You have to be cautious about buying a repossession if your intent is to make money off of it. Even though the bank is typically eager to sell it quickly, they are also looking to get as much as they can for it.

Fonville Morisey Realty has experience to share with foreclosures and bank owned properties in Cary, North Carolina

When pondering the value of a foreclosure, 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. It is possible to find REOs with money-making potential, and many people do very well buying and selling foreclosures. But there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most banks have a department dedicated to REO that you'll work with when buying REO property from them. Commonly the REO department will use a listing agent to get their REO properties listed on the local MLS.

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 their knowledge about the condition of the property and what their process is for taking offers. Since banks usually 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 unknown damage and retract 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, you can expect the bank to make a counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Your deal could be settled in a single 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.