There are a number of opportunities to find quality foreclosed homes in Durham, NC these days. You will find competition for these homes so acting quickly is recommended. Short sales are also popular among buyers and investors these days because they offer the chance to buy a home at a discounted price as well. Many people expect foreclosure opportunities to continue for awhile with so many homes in default and high unemployment until the housing market stabilizes and the economy improves. So if you are in a financial position to purchase foreclosure homes, now is a great time to do so. With historically low interest rates and affordable housing in the Durham area, there is little excuse not to invest in a foreclosed home.
Where to Find Foreclosed Homes?
According to Realtytrac.com, there are currently 187 trustee sales in the Durham area, including five auctions and a 146 real estate owned bank properties for sale. One in every 2,147 persons received some time of foreclosure notice in the Durham area in August 2012. To find these properties and obtain your pot of gold, you can use the following resources:
Internet:
Both onsite and online auctions are advertised on the Internet. The county courthouse posts notices of foreclosure sale auctions as well at the property site. Foreclosure auctions are great places to find foreclosure bargains. However, there is a lot of competition at auctions so you should set a price that you are willing to bid and stick to it because it is easy to get caught up in the excitement and then end up over paying. To purchase a home at a Durham foreclosure auction, you will need cash.
Before you get ready to bid at an auction, it is best to check with the contact person ahead of time to find out the bidding rules and registration requirements. Also it is a good idea to do your due diligence ahead of time and arrive early to the auction. Auctions that are conducted online are convenient because you never have to leave the comforts of your home or office to bid.
Local Realtors
REO foreclosure properties are listed with local Durham Realtors. When you make an offer on a REO, you must do so through a Realtor. The listing agent representing the bank will be the person who submits the offer to the bank on your behalf. You can choose to work with the bank’s listing agent or your own buyer’s agent. The bank pays the real estate brokerage commissions fees. It is also possible to ask the bank to pay your closing costs. You will need to have your Realtor include that in your offer. The bank will not automatically agree to pay buyer’s closing costs without it being negotiated in the purchase and sale contract.
Newspaper and Magazine Ads
Foreclosure properties are advertised in newspaper ads. Pre-foreclosure short sale properties are often advertised by for sale by owners in the local newspaper as well. Realtors advertise their bank REO listings in the local newspaper real estate section. Home magazines are another source to finding REO listings. REO listings are also sold at discounted prices.
County Records
A list of persons who have received foreclosure default notices can be found in the county records. You can go to the county clerk’s office to research the information or search public records online. Once you compile a list of persons in default, you may want to write a letter or call them to find out if they are interested in selling their home to you. Don’t be surprised if the owners are not receptive at first because many times they don’t know that a default notice has been filed against their home, or frequently they are in denial about their financial situation. You may have to follow-up a couple of times before someone agrees to talk to you about the possibility of you purchasing their home and helping them avoid foreclosure.
Drive By Neighborhoods
If it is convenient and you live close by, then driving over to the Durham neighborhoods you are interested in purchasing property in is a good way to find foreclosure homes. Look for bank signs or short sale for sale by owner or Realtor listings. You can also see whether the home is occupied or vacant and the outside condition as well as get a feel for the neighborhood and location and proximity to transportation, entertainment, shopping and restaurants.
Due Diligence
Home inspections and surveys should be included in your due diligence. Having a title company check for liens is a must. If you purchase a home at an auction, you are responsible for paying off the liens. A local Realtor can also provide you with a comparative market survey so you know what homes are selling for in the Durham area. This way you can tell whether the foreclosure bargain you found is really a bargain. While most foreclosed homes are sold at or below market value, it is still a good idea to educate yourself on home prices so you don’t make any costly mistakes that you will regret later.
Investing in Durham, NC foreclosure properties is a smart way to increase your portfolio and build long term wealth. Once the market rebounds, you can sell your home at a profit or hold on to it and let it appreciate while you receive rental income. There is a high demand for rental homes in the Durham area as well. So if you are thinking about where to invest your hard earned money and receive a high rate of return, buying Durham foreclosure properties is one of the best places to put your money right now while prices remain affordable and interest rates remain low.
