Interested in REO property or a foreclosure in Charleston?

Just as with any property purchase, your smartest move is to hire a professional real estate agent. For more information, simply contact me through my site or e-mail me. I'm happy to answer any questions you have regarding real estate foreclosures.

What's an REO?

"REO" is an abbreviation for Real Estate Owned. These are houses which have been foreclosed upon and are presently owned by the bank or mortgage company. This is different than a property up for foreclosure auction. Carolina One Real Estate has experience to share with foreclosures and bank owned properties in Charleston, South 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 able to pay with cash in hand. Finally, you'll get the property 100% as is. That could consist of existing liens and even current occupants that need to be put out.

A bank-owned property, on the contrary, is a more tidy and attractive deal. The REO property did not find a buyer during foreclosure auction. The lender now owns it. The lender will deal with the elimination of tax liens, evict occupants if needed and generally organize for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from typical disclosure requirements. For instance, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to disclose any defects of which they are knowledgeable. By hiring Carolina One Real Estate, you can rest assured knowing all parties are fulfilling South Carolina state disclosure requirements.

Is REO property in Charleston a bargain?

It's frequently believed that any REO must be a good buy and a possibility for guaranteed profit. This frequently isn't true. You have to be very careful about buying a REO if your intent is make a profit. While it's true that the bank is often anxious to sell it soon, they are also looking to get as much as they can for it.

Carolina One Real Estate has experience to share with foreclosures and bank owned properties in Charleston, South Carolina Look carefully at the listing and sales prices of competing homes in the neighborhood when considering the purchase of an REO. And factor in any repairs or remodeling necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well buying and selling foreclosures. Still there are also many REOs that are not good buys and may not be money makers.

Prepared to make an offer?

Most banks have staff dedicated to REO that you'll work with when buying REO property from them. Usually 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 what they know about the condition of the property and what their process is for taking 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 unknown damage and withdraw the offer if you find it. As with making any offer on real estate, providing documentation of your ability to secure financing may make your offer more attractive, such as a pre-approval letter from a lender.

After you've made your offer, it's customary for the bank to respond with a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Your deal might be final in a single day, but that's usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer. usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.

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