You can find all the distressed property in Transylvania County North Carolina by clicking on the links below. If you are currently looking for a distressed property, either a Short Sale or a Foreclosure, please take a few minutes to read a description of these property types below.
Foreclosure Properties Short Sale Properties
First, let’s define the types of distressed property.
Short Sale - A sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
Real Estate Owned (REO) – A property that is deeded to the mortgage company after an unsuccessful foreclosure auction. These properties are sometimes referred to as foreclosures.
What are Short Sales?
Short Sales happen when home values fall and sellers do not receive enough cash from a buyer to pay off their existing mortgages. In a short sale transaction, your offer is made to the homeowner but the current mortgage holder must approve the transaction. Waiting for an answer on a short sale can be frustrating. Banks can take a long time to decide. Some short sale buyers can wait 2 months or more for a response from the lender.
You're a good candidate for a short-sale purchase if:
1. You're very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale lender approval typically takes about two months. If there is more than one mortgage with different lenders, it may take four months or longer for the lenders to approve the sale.
2. Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
3. You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you.
What about REOs - Real Estate Owned?
Bank-owned properties, or foreclosures, are called REOs meaning Real Estate Owned by the lender. An REO is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. If you are making an offer on a foreclosure (REO), the seller is usually the bank. The property was acquired by the lender through a foreclosure action. Banks end up owning the property when nobody at the public auction bid enough to cover the amount owed against the property. REO homes are often considered the best way to buy a distressed property because the seller is already out of the picture. It's just the buyer, the buyer’s agent, the bank and the bank's agent who are negotiating the transaction.
Buying a home that has gone through a foreclosure or is in a short sale situation can sometimes result in a real bargain or can sometimes become a challenge. Most distressed property is sold “As Is” and “Where Is”. If you are considering a short sale or REO purchase, always, always, always get a home inspection when you buy. Hire a qualified and accredited individual to perform the inspection. Be there for the inspection and ask questions. Pay close attention to safety issues. Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct. Be an informed buyer.
Please contact me if you would like additional information concerning distressed properties. You can reach me at 828-553-7317 or you can email me. I’d be happy to help.