What is the difference between Outer Banks Foreclosures, Bank Owned Properties (or REO) & Short Sales?
Outer Banks Foreclosures - Foreclosure properties are in the process of being foreclosed but are still owned by the homeowners. How does a home owner get help if they are worried about their house going into foreclosure? The home owner should call the bank prior to being unable to make the monthly loan payments. A bank would rather renegotiate the loan terms with the distressed property homeowner than to take on more foreclosures. If you are an Outer Banks distressed property homeowner, click this link to learn how to avoid foreclosures.
Outer Banks Bank Owned Properties - What are bank owned properties or what is an REO? Bank owned properties are properties that have already been foreclosed. These Outer Banks foreclosed properties are referred to as REO (Real Estate Owned) which means the foreclosure has taken place and now the home is in the bank's posession and is placed for sale on the market with a listing agent. Typically, REO or bank owned properties are listed minus any furniture, appliances, hot tubs, light fixtures...etc. in the house. Occasionally, there may be one here or there which will include the fixtures and even some appliances. The value of Outer Banks bank owned properties or REOs has already been researched through several different bank resources, so when the distressed home finally hits the market, it is commonly priced for a quick sale. Occasionally, there will be a few that have missed the mark but most Outer Banks bank owned properties are competitively priced to sell fairly quickly.
Outer Banks Short Sales - What are short sales? Short sales occur when a property is sold but the lender agreed to accept a discounted payoff. The lender released the lien that was secured to the property upon receipt of less money than was actually owed. It is important to note that lenders will most often only accept offers on Outer Banks short sales if the offers are close to market value. And even though the seller and buyer have agreed upon the contract terms, the contract and terms must be approved by the lender. The process of Outer Banks short sales typicially takes much longer to negotiate than Outer Banks bank owned properties especially if there are two notes involved on the property because then you're most likely dealing with more than one bank. It is recommended that you seek counsel from your attorney and talk to your accountant about tax ramifications on Outer Banks short sales as well. The debt forgiven could be taxable. Here is more about buying OUTER BANKS SHORT SALES .
How do the transactions of outer banks foreclosures or bank owned properties differ from a regular or normal sale? Some typical ways Outer Banks bank owned properties are different are that the bank makes no representation on the property, they have their own (additional) paperwork for the offer, often they will not make any concessions or agree to make repairs, the required Earnest Money Deposit may be higher (usually around 3% of the offer), and proof of funds must accompany the offer--sometimes by the same bank that now owns the Outer Banks distressed property. In a multiple offer situation, the cleanest offer is the one the bank will most likely choose. This is one with no contingencies, very close to or more than the asking price, paying cash or getting a conventional loan with a 30 day closing date.
In the links above, you'll find all Outer Banks NC Foreclosures, Outer Banks NC Bank Owned Properties, or Outer Banks NC Short Sale properties available for sale in Corolla, NC, Duck, NC, Nags Head, NC, on the oceanfront or anywhere else on the Outer Banks. Call or email us with any questions you have and we'll provide you with all the information you need to make a sound decision on buying Outer Banks distressed properties, including information on property value, debt owed on a property, last purchased price, closing costs, the steps to placing an offer and the steps to expect once the offer has been accepted.
Whether it is Duck NC, Corolla, Nags Head NC, Outer Banks oceanfront or anywhere on the Outer Banks of North Carolina, we can help you get there and we give you 1% of the contract price back at closing to help you with closing costs -- saving you thousands of dollars so you can come to the closing table with less money!