East Coast Properties REO

Buying A Foreclosure


Found a home you want to set up a showing for?  Looking for an agent to give you the best advice?  Contact Us to learn more

 

Buying bank owned properties (also known as REO properties) works a little differently from normal market sales.  Below are a few tips and some info which may make wading into the world of REO a little easier.

 

Making Offers

With a heavy number of properties being managed at any given time, offer response times can vary greatly depending on the client and their present number of properties. 

Disclosure

Bank owned properties are exempted from disclosure, as the seller never occupied the property and has NO history about the property.  This means that the seller cannot confirm or deny any supposed defects to the property which may be claimed by any third party, such as a neighbor.  It is recommended you complete inspections needed for your purchase as outlined in the final seller addendums and contracts and pay special attention to any timelines in this regard.

 

Counters and Multiple Offers

Because of the turn-around times involved in countering offers, and the significant interest in our listings, properties often may go into multiple offer situations.  As a result, it is recommended that offer counters be kept to a minimum if you wish to avoid a possible multiple offer situation.  Should the property you are offering on become subject to multiple offers, your agent will be advised on how to proceed. At this point, the seller will request "highest and best" offers from all interested parties with a deadline established.

 

Addendums

Addendums will usually accompany any seller acceptance package.  These addendums will often include provisions regarding closing date, lender/financing requirements and timeframes, and inspection dates.        These forms often supercede the normal North Carolina contracts your realtor may use in your offer.  It is important that your agent be familiar with the requirements contained in those addendums, as the seller will hold any buyer to the terms of these forms.  One source of contention often involved in this regard involves earnest money.  Seller requirements regarding inspections, financing approval and closing dates must be held to, or the seller may either cancel the contract, earnest money may become non-refundable or per diem penalties may be applied.   Make certain that your lender is aware up-front of any financing contingency dates.

 

Closing Requirements

Many bank clients have addendums which require the buyer use their closing agent (attorney) or title company.  If this is the case, this is not optional and any changes to the seller's contract forms will void your offer.  Don't worry - You won't have to travel for closing.  If the seller's closing attorney is not local they may provide a traveling "closer" to come to your agent's office or may provide a "mail-away" closing.  Refer any questions regarding title insurance or title searches to your agent.