Foreclosed/REO/Bank Owned Homes
There is a lot of interest in buying foreclosed properties these days. A lot of information, some good and some bad, is floating around about the subject. Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”. The fact is that there are no secrets, and to make money does require effort.
What is a REO?
REO stands for “Real Estate Owned”. The home is now Bank Owned Property that has gone through a foreclosure process. This is not the same as a property up for foreclosure auction. A REO, by contrast, is a much “cleaner” and attractive transaction because the bank now owns it. The bank will see to 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.
REOs, bank owned homes, and foreclosed homes mean the same. Let's use foreclosed homes since it's the more commonly used word of the three.
Is it a bargain?
It’s commonly assumed that any foreclosed homes must be a bargain and an opportunity for easy money. This simply isn’t true. You have to be very careful about buying a foreclosed home if your intent is to make money off of it. While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a foreclosed home, 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. The bargains with money making potential exist, and many people do very well buying foreclosed homes. But there are also many foreclosed homes that are not good buys and not likely to turn a profit.
If you see a property that catches your eye, please contact us immediately as the best deals tend to attract offers very quickly. Below are foreclosed homes in Beulaville, Bogue, Cape Carteret, Cedar Point, Emerald Isle, Hampstead, Holly Ridge, Hubert, Jacksonville, Maple Hill, Maysville, Newport, North Topsail Beach, Richlands, Sneads Ferry, Swansboro, Stella, and Surf City.