Posted by: Roby Robertson | July 21, 2009

Lake Norman Foreclosures|The Real Story

Lake Norman Foreclosures

I get about 3-5 calls and a couple of emails a week from readers of my blog looking for foreclosures and specifically waterfront foreclosures.

Interestingly, some of the people that contact me know very little about foreclosures and the process except that they can spell ‘foreclosure’. I know that may sound harsh but I am just being honest.

I am not going to try and explain the whole drawn out process but I will say this.  Once the bank has foreclosed and the owners are gone, the trustee (or deed of trust) holding the note auctions the home at the courthouse.  If you are the winning bidder, there is then a 10 day upset period where someone can bid higher.  A bidding war could then ensue and things could possibly go on and on…

Foreclosures that have already been offered at auction at the courthouse steps are oftentimes purchased back by the bank. In other words, the general public has not bought the home. There are other mechanisms for buying these homes where auction companies will auction off a large number of properties at one event.  I can tell you that these two methods come with more risk, and you had better have cash.  These are more often purchased by investors that purchase homes for a living.

What I am able to do is find the Lake Norman homes that are pre-foreclosures, short sales and bank owned marketed by a real estate company. While these can be good deals, they typically can not be bought for 50% of asking price.  The average in our area purchase price on these Lake Norman homes is typically around the 80% of list price . 

 It is important to understand that the banks request from the listing agents what is called a BPO (broker price opinion).  This price has nothing to do with owed on the property.   The bank wants to know what a reasonable price would be.  They are already taking a loss but want to still get out of it what they can.  The broker takes many things into consideration which includes the condition of the home.  Too often foreclosed people decide that caring for the home is no longer important so they leave it in disrepair.

I just want those buyers looking to ‘steal’ something to please be realistic.  The banks do want to sell the properties.  However, the banks are not giving them away which is why they have solicited the help of a professoial agent.  I also want to state emphatically that if you compare the price you might pay to what the home originally sold for and what homes of that type originally sold for, you are still get a great deal.  The market will come back.  It might never reach the levels we have grown accustomed, however I can help you find homes that come with instant equity which is the goal for finding one of these.

Lastly I want to state this.  I might be asked by clients to find them foreclosures or short sales.  However, I might present a home being sold normally that I believe is still a fantastic deal.  All things considered, there are still some great deals on Lake Norman property and I’d hate for someone to miss out just because it is not called a foreclosure or short sale! 

If this is something you might be interested in, please feel free to discuss this with your Lake Norman Area agent by calling 704 451 7051.

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