Interested in REO property or a foreclosure in Charlotte?


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

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are houses which have been foreclosed upon that the bank or mortgage company currently possesses. This is unlike a property up for foreclosure auction. Hines & Associates Realty has experience to share with foreclosures and bank owned properties in Cornelius, North Carolina

Hines & Associates Realty has experience to share with foreclosures and bank owned properties in Cornelius, 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 accumulated during the foreclosure process. The buyer must also be willing to pay with cash in hand. And on top of all that, you'll receive the property 100% as is. That may consist of prevailing liens and even current tenants that need to be thrown out.

A bank-owned property, conversely, is a much neater and attractive option. The REO property didn't find a buyer during foreclosure auction. Now the bank owns it. The bank will see to 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.

Do be aware that REOs may be exempt from normal disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that normally requires sellers to make known any defects of which they are informed. By hiring Hines & Associates Realty, you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Are REO properties a bargain in Mecklenburg County?

It is frequently believed that any REO must be a bargain and an opportunity for easy money. This isn't necessarily the case. You have to be cautious about buying a REO if your intent is make money. Even though the bank is often anxious to sell it fast, they are also looking to get as much as they can for it.

Hines & Associates Realty has experience to share with foreclosures and bank owned properties in Cornelius, North Carolina

When contemplating what to pay for REO property, you need to look closely at 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. But there are also many REOs that are not good buys and may not be money makers.

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 frequently use 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 what they know concerning the condition of the property and what their process is for accepting offers. Since banks typically 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 unseen damage and withdraw the offer if you find it. If, as a buyer, you can provide documentation proving your ability to pay, such as a pre-approval letter from a lender, your offer will be more attractive and likely be accepted. (This goes 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 up to you to decide whether to accept their counter, or offer a counter to the counter offer. Your transaction could be settled in one day, but that's rare. 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. Hines & Associates Realty is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no undue delays.

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January 2012 Charlotte Area Stats Released