When a foreclosed home does not sell at auction, it becomes a (REO) real estate owned or bank owned property. Since the banks are not interrested in keeping assets, like homes, that require maintenance, they will probably be interested in selling the property. Usually the banks will get an asset managemant company to handle the sale and this comapny will then retain a local real estate agent to list the property. The property will usually be listed to sell for whatever the market will bear.
In a purchase of a foreclosure, it is important for buyers to be represented by a REALTOR who understands the unique processes and paperwork involved in that particular kind of transaction. Each lending institution has their own addendums and special forms. Buyers of foreclosed homes should realize that it is necessary to have a great deal of patience as delays, problems and a lot of red tape are the norm. It is important for these buyers to also realize that the whole transaction is slanted to favor the bank. In a typical foreclosure purchase the buyer waives many of the rights that they may have in a traditional home purchase. For that reason, it is a good idea to have the advice of an experienced real estate attorney as well as a buyer’s agent who understands the foreclosure process.
However, for the educated buyer the purchase of a foreclosed home may present a very good opportunity.
If you are considering the purchase of a foreclosed home, I will be happy to talk with you about this unique process. I would also be happy to help you find foreclosed homes in the Charlottesville and Central Virginia real estate market that may suit your particular wants and needs.