Asheville Real Estate - Bank Owned Residential Properties

This article is intended to give you a general idea only about Asheville Bank Owned properties, also referred to as REO which stands for Real Estate Owned. Bank owned properties are usually a result from an unsuccessful foreclosure auction. Once this happens the bank is forced to take the property back and now owns the property. A large reason that the bank ends up having to take the property back is due to the outstanding balance owing on the property which in many cases is higher than what the current Asheville real estate market might bear, which in turn makes it unmarketable and not auction friendly (so to speak).

The lender does not want to sell it for a huge loss, the lender is trying to recover the mortgage debt, and all the fees associated with the foreclosure and auction and therefore it usually puts the property at to high a price. The property reverts back to the bank and the bank holds on to it hoping that the Asheville real estate market will improve and they can sell it at a later date and recoup their losses, or a good portion of them. But in a down market and with a large inventory of bank owned properties, the bank may find themselves in a position of having to place it on the market earlier than anticipated and having to offer price reductions and even special financing incentives that they will only offer on their select bank owned properties.

The buyer is usually allowed to inspect the property but most bank owned properties are sold AS-IS meaning that they would prefer not to have to perform repairs that you and your home inspector might find, but you can always ask for repairs or adjust your offer accordingly. The bank normally does repairs they feel are needed prior to placing the property on the market. Once you find a property that is suitable for you and you have inspected it, the next step is to put in an offer on the property. If the offer is to low the bank will probably counter just like any owner would do, the only difference might be that it might take more time to get the response due to red tape, chain of approvals etc... There are many items and contingencies that you should be aware of that you might want to put into your offer to protect yourself, contact your Asheville Realtor® for help and advice.

See other articles below:

Foreclosure • Short Sale • Priced Below Appraisal • Motivated Seller • Bring All Offers • Price Reduced • Bank Owned

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