Buying a foreclosure is a great opportunity for you to acquire property at a much lower price than at a regular sale. In Troutman, NC, you’ll find quite a few foreclosure options that will make excellent investments.
Buying foreclosures, however, comes with its own nuances that could prove challenging to non-professionals. It’s best to work with an experienced Realtor who specializes in this type of property and can provide you with the guidance you need.
It will also help to learn as much as you can about the process of buying a foreclosed property in NC. Here are some of the things you need to know.
The stages of foreclosure
In North Carolina, the primary method of foreclosure is non-judicial, which means that a court action is not involved. The lender, though, is required to post several notices to the borrower under strict guidelines.
Under NC laws, the lender must wait until the homeowner is delinquent for at least 120 days before they can send the first notice or start the foreclosure process. The initial notice must be served to the borrower 45 days prior to starting foreclosure. This period is often referred to as pre-foreclosure.
If the borrower fails to cure their delinquency, the property goes on sale at a public auction. At the sale, the property is either sold to the highest third party bidder, or goes back to the lender as an REO (Real Estate Owned). REOs are typically endorsed by the lender to a real estate professional for listing.
Foreclosed Homes in Troutman NC
Where to find foreclosure properties for sale
There are several sources of information about foreclosures for sale:
- Our listings – We specialize in foreclosures in Troutman and other Lake Norman communities. Check our featured listings and community pages for some great options.
- County courthouse – Properties in foreclosure must be posted on a board in each county courthouse, with information about the property, the date and time of the sale, and the rules of the sale.
- Law firm or trustee websites – Trustees of foreclosed properties – typically the lender’s attorney – post the sale of these properties on their websites.
Tips on buying foreclosure
The best time to buy is during the pre-foreclosure stage when the homeowner is likely most responsive to a sale. Buying at pre-foreclosure is also less complicated as you will be dealing with the homeowner instead of the bank. While homeowners may not be as cooperative as you would like, they’re often represented by professionals who can provide you with the information you need and assistance in home inspections and other processes.
Buying at pre-foreclosure also saves you from any concern about redemption rights – a law that allows the borrower to reclaim the property within 10 days after the foreclosure sale.
If you’re buying at a public sale, you have to be prepared to pay the down payment on the spot if you win the bid. You also need to keep in mind that you’re buying the property as is – the cost for any needed repairs or renovations will have to be shouldered by you alone. In many cases, the foreclosing bank ends up outbidding third party buyers, and the property goes to REO.
Buying REO offers the most security as you have all the time you need to inspect the property and factor the necessary repair costs in your offer.
If you want to learn more about buying foreclosures in NC, give us a call at 704- 608-6287 or get in touch with us here.