Banktown Foreclosures

The lure of buying foreclosed properties has always been there - low prices and good deals draw investors and owner occupants alike. This perception has only grown as a result of the recent recession. Buying a bank owned home or condo isn't that much different than a typical purchase process, but there are some differences, some considerations, and some ways to be better prepared that can make your search easier, the negotiations smoother, and the odds of getting the property you want higher.  Below are the basics...if you have any additional questions, please feel free to contact me - I'll be happy to help!

The "Nuts & Bolts" of the foreclosure purchase process:

The 1st rule of finding, and getting, a great deal on a foreclosed home or condo is BE PREPARED!  The steps below will ensure that you are putting your best effort forward and your offer will be considered in a timely manner and with the best chances of coming to terms with the listing firm and their client...the bank!  

GET PREQUALIFIED - the asset managers and banks that hold foreclosed properties will not consider any offer without a letter that shows you have been pre-qualified for a purchase.  The process isn't complicated and can usually be done online or over the phone.  If you don't have a lender you prefer work with, I recommend the two lenders / loan officers below - they've done an outstanding job helping many of my clients with closings - even difficult properties that are bank owned or short sale deals. Click on the logos to link to their websites.

       Mike Ray - BB&T - Conventional, CHIP program, FHA and other programs including "Homepath" - mike.ray@BBandT.com

 Tiffany Turner - HUD, FHA & House Charlotte specialist tturner@envoymtg.com (704) 737-8433

CASH BUYERS - obviously you don't have to be pre-qualified if you are making your purchase iwith cash, but we will need to submit "proof of funds" along with your offer for it to be considered.  In many cases this can just be a statement that shows your cash reserves, in other cases it needs to be a letter from your banker confirming your funds.  Either way it is best, while looking, to already have this ready in case you want to jump and make on an offer on a great deal.

DECIDE WHERE YOU WANT TO BE - the Charlotte region has all kinds of living options.  Not only property type - condo, townhome, or house - but also neighborhood type - urban or sububan, city or rural - or city district.  You might want a country spread in Mint Hill, an uptown Penthouse, or a classic bunglow in Dilworth, Wesley Heights, Wilmore, or Noda.  Choosing the right area is as important as choosing the right property and can be just as difficult.  Here are a few things to consider and decide if they are important to you and your lifestyle:

• Proximity to employment or commute
• School Districts
• Proximity to restaurants, bars, cafes, shopping, movies or any activity that is important to you,
• Urban walkable environment
• Proximity to light-rail or mass transit
• Community with pool or playgrounds
• Proximity to interstate or highway
• Art or Gallery District (NoDa or Southend)
• Historic Districts

Choosing Your Price Level or Acceptable Monthly Payment - often clients find themselves qualified for more than they are comfortable paying.  Decide what monthly payment and other expenses you are comfortable committing to and stick to your guns!  Just because you qualify for a particular amount doesn't mean that is how much you need to spend.

KNOW YOUR ASPIRATIONS or LIMITATIONS - if you aren't prepared to make repairs and renovate a home, either because you don't want to expend the time and energy or if you aren't financially able, there is no reason to view "fixer uppers".  The banks that hold foreclosed properties in almost all cases will make no repairs and insist on "as is" sales - that means if a property needs repair you are going to inherit thosse issues at closing.  Furthermore, many lenders and especially FHA, won't accept or lend on properties that are in need of many repairs or aren't livable.  There are programs out there that will lend money for repairs, FHA 203(k) loans and some Homesteps loans with Fannie Mae, but these are more complicated than typical loan scenarios and do have strings attached.

BEGIN THE SEARCH - actually getting started and looking at properties should be the fun part.  Most clients know what they want generally, and the more the search goes on the easier it is for the agent, and the client, to narrow the search to properties that begin to fit tighter and tighter with specific criteria.  For the most part, when clients find the right property there is a "feel" that lets that know it is the right one.  Don't be afraid, however, if that "feel" is early in the search.  For some clients we'll look at dozens of properties, for others just a handful.  There is no "right" number to see before finding the right fit.

MAKING THE OFFER - this is the crucial part, especially if we've found a great property at a great price - again, the best deals, foreclosure or not, are often being considered by more than one party.  If you know it is the property for you and you have everything ready there is no reason to delay.  I've had clients miss their dream home because they felt no urgency to get their offer in - and while we waited someone else didn't and made the offer!

MULTIPLE OFFERS ON THE SAME PROPERTY - click this LINK for information on this scenario.

Buyers agent / broker / Realtor in the greater Charlotte, NC, market for foreclosed, bank owned, REO and short sale properties.  I've helped dozens of buyers inthe past 12 months purchase foreclosed condos and homes - lake properties, golf properties, Uptown Charlotte condos, historic district bungalows. Your dream home or condo is out there!