A real estate owned property is often referred to as an REO. The lender, which is usually a bank, owns the REO. When there has been a housing bubble, as we have seen within the last decade, the homes in foreclosure tend to have more owed on them than they do market value. If the home owner misses enough payments, the bank considers the property to be in a “distressed” status. Once the property is distressed, the bank then attempts to determine the amount of value the property has.
Banks try to sell the property at a foreclosure auction for at least the amount of the outstanding loan and if the property cannot sell, the property then becomes an REO. The bank then needs to sell the property as quickly as possible because now the home is a non-performing asset – meaning that the bank can no longer make money on this investment. Banks will then need to sell the property as soon as they can. Real estate investors are attracted to the properties because the banks are willing to offer them deep discounts in order to get the properties sold quickly.
Why buy a bank-owned property?
There are several advantages when it comes to purchasing a home from a bank rather than from an individual seller. The home is purchased directly from the bank instead of buying from homeowners, so the title is clear and in your name. Banks are motivated to sell quickly and will usually waive any money owed for real estate taxes as well as taking care of any unpaid water or utility bills as well as offering additional discounts that translate to an overall less expensive purchase.
Deciding to buy a bank-owned property is also one of the safest investments you can make as a first time home owner mostly because there aren’t any legal issues regarding ownership of the property in regards to the previous owner. Unlike a sale at a foreclosure auction, you can actively tour and inspect the home before you decide to purchase it.
The best real estate for sale in Mt Laurel, New Jersey
Mt Laurel is a place filled with history and stands apart from the bustle of big city life. The suburban neighborhoods are diverse and family friendly and there’s a wide array of properties for sale ranging from condos to townhouses. The town of Mt Laurel is that of a close suburban community, built on 22 square miles with a population of 41,000 residents. There are businesses, entertainment, and schools within walking distance of most homes. The town is built on community and you see it in the award-winning Laurel Acres Park that host everything from live music and outdoor shows to Spoonwood Lake where you can swim or fish to your heart’s desire.
Regardless if you choose to live in a gated community or in a home surrounded by acres of nature, our real estate agent Roxanne Ardary is there to help you from the moment you decide to buy a property up until you are walking through the front door of your new home. Often cited as the best real estate agent in the business, Roxanne has extensive knowledge of Mt Laurel and the beautiful homes that Mt Laurel is known for. She is steadfast in her commitment to the purchaser and is always on top of the entire bank process, including the negotiations.
First time buyers may not know the area of Mt Laurel and may be rather overwhelmed by the entire purchasing process or may not even know what type of property best suits them. Roxanne Ardary is experienced and knows not only Mt Laurel, but also the maze that the buying process forces a new homeowner to navigate. With Roxanne at your side, the buying process is a lot easier to handle because of her willingness to work hard for you and her ability to assist you with every step on the way to becoming a homeowner.
Foreclosed homes are a great long term investment
The best option for a long term investment lies in the ability to profit from the investment long term. Homes historically only appreciate with age and, with a home in good condition, can create wealth. But deciding to purchase a property is leagues away from going through the network of details and legal work that you experience in the buying process, and all of that is secondary to finding the perfect property to purchase. Roxanne Ardary is an experienced investor and can guide you through the process of buying a foreclosed home so the task isn’t as daunting to first time buyers.
And because the banks are looking to sell the property as quickly as they can, Roxanne can find you the best deal for your dollar. A foreclosed home in Mt Laurel, with its well-planned infrastructure and diverse community, is a potential investment gold mine. Rather than selecting a home at random from a map or through the web, Roxanne can show you the actual homes that have the highest investment potential and which ones the banks are more motivated to sell. Knowing the market is the key point in any long-term investment and buying a reo property in Mt Laurel is no different. Let Roxanne Ardary guide you through your investment strategy and see why she is the top rated real estate investor around!