Looking for REO property or a foreclosure in Winston-Salem?


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

What is an REO?

"REO" means Real Estate Owned. These are homes which have been foreclosed upon and are now possessed by the bank or mortgage company. This is not the same as a property up for foreclosure auction. Blalock Realty, Inc. has experience to share with foreclosures and bank owned properties in Winston-Salem, North Carolina

Blalock Realty, Inc. has experience to share with foreclosures and bank owned properties in Winston-Salem, North Carolina

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees added during the foreclosure process. The buyer must also be ready to pay with cash in hand. And on top of all that, you'll accept the property entirely as is. That possibly may include prevailing liens and even current residents that need to be kicked out.

A bank-owned property, conversely, is a more tidy and attractive deal. The REO property didn't find a buyer during foreclosure auction. The bank now owns it. The lender will take care of the removal 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 normal disclosure requirements. For example, in Texas, it is optional for foreclosures to have a Property Disclosure Statement, a document that ordinarily requires sellers to make known any defects of which they are aware. By hiring Blalock Realty, Inc., you can rest assured knowing all parties are fulfilling North Carolina state disclosure requirements.

Are REO properties a bargain in Winston-Salem?

It's commonly believed that any foreclosure must be a bargain and a chance for easy money. This frequently isn't true. You have to be very careful about buying a repossession if your intent is profit from the sale. While it's true that the bank is usually anxious to sell it fast, they are also motivated to minimize any losses.

Blalock Realty, Inc. has experience to share with foreclosures and bank owned properties in Winston-Salem, North Carolina

Look carefully at the listing and sales prices of similar homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or upgrades 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 and selling foreclosures. But there are also many REOs that are not good buys and may lose money.

Ready to make an offer?

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

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about their knowledge concerning the condition of the property and what their process is for receiving offers. Since banks typically sell REO properties "as is", it's often prudent 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 presented your offer, it's customary for the bank to respond with a counter offer. At this point it will be your choice whether to accept their counter, or offer a counter to the counter offer. Realize, you'll be dealing with a process that most likely involves multiple people at the bank, and they don't work evenings or weekends. It's not uncommon for the process of offers and counter offers to take days or even weeks.

Serving all of your commercial and residential real estate needs in the Piedmont Triad