What You Need To Know About Purchasing Foreclosure Homes In Asheville North Carolina

Thu, Jan 06, 2022 at 2:44PM

What You Need To Know About Purchasing Foreclosure Homes In Asheville North Carolina

If you want a fantastic deal on a new-to-you home or want to invest in a property that will offer you a great return on your investment, then foreclosed houses may be a great place to look in addition to other homes on the market. While real-estate investments can be risky, the potential upsides are enormous. 


If you’ve considered looking at foreclosed homes in Asheville, North Carolina, you’re in the right place. Here’s what you need to know to be as prepared as possible. 


Pros and Cons of Buying a Foreclosure 

Foreclosed properties are sold for a fraction of their market worth to get them off the owners' and lenders' hands as fast as possible. This implies that investors could benefit handsomely if everything goes according to plan. 


Purchasing a foreclosed house comes with significant risk because you may not be able to inspect the property personally, so you could accidentally buy a home that requires repairs and improvements that will cost more than the potential earnings.


Stages of a Foreclosed Home

When you’re searching for foreclosed homes in Asheville, North Carolina, the terms can quickly get confusing. There are three main stages of the foreclosure process buyers should be aware of, and make sure you have a real estate professional on your side when navigating these processes. 

·       Pre-Foreclosure

The owner of a property that is about to be foreclosed on will be warned that they must make their mortgage payments or their home will be seized before a formal repossession takes place. This warning allows the homeowner time to either catch up on payments or sell their house.

·       Foreclosure Auction

The residence will be confiscated and auctioned off if a homeowner is unable to pay their debts. You won't be able to inspect the home firsthand at these auctions, although you can receive great prices. 


Auctions can be risky: If the property you buy turns out to be in poor condition, you might wind up paying significantly more on repairs than you anticipated.

·       Bank-Owned or Real Estate-Owned (REO) Homes

Sometimes the lender takes possession of houses that do not sell during pre-foreclosure or the auction. The lending group will then repair the property and resell it as a conventional house. 


These homes are priced similar to fair market value due to the labor needed to complete essential repairs, making it much more difficult to discover a bargain at this point of the foreclosure process.


Getting Approved for Foreclosed Homes in Asheville, North Carolina 

To acquire a foreclosed home, you'll need two things: a mortgage pre-approval and a skilled real estate agent. 


The first step is to hire a real estate agent who can guide you through the complicated process of buying a foreclosed house. Our team can offer you a free consultation to show you what we can do for you.


Then, find a lender and provide them with the financial information they require to get pre-approved for a loan. If you don't have a lender in mind, we have a handful of references we trust for you to choose from. If you're approved, they'll establish a limit on how much money you may borrow. 

Interested in learning more about buying foreclosure homes? Give our expert team a call and we will be happy to help!


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