Many people looking to purchase a bank owned home in the Charlotte Real Estate market (and likely all across the country) feel the bank will finance the home. Not so. The bank hold assets/investments and survive based on rate of return/interest on the money. A bank owned home is a nonperforming asset or more simply stated "it was a bad investment for the bank". It is a loss. The bank wants to minimize their loss and get it off their books. The bank still needs to recoup as much as they can but nonetheless, they need to recover from the loss and move forward.
The person purchasing a foreclosure must get financing the same way as any other person buying a home. Financing a foreclosure may be more difficult based on the condition of the home. A foreclosure may not have working heat and air, a functioning electrical system, plumbing issues or a wide variety of problems. These types of Charlotte Foreclosures have tighter lending guidelines and fewer people can get financing. Many home buyers do not have the time, money and/or talent to make the house a home. These homes will be priced accordingly.
Financing rules have changed dramatically over the past 3 years! Expect a much larger down payment if you are buying an investment home. Your credit and current debt will be scrutinized heavily when buying a home. Your income, job history and many other factors are essential.
Ultimately, you need to know what financing options are available, the current market, the actual value and demand of the neighborhood before you proceed with the purchase of your foreclosure.
Do not misunderstand. There are some amazing Charlotte Foreclosures on the market. One must also realize that Real Estate is local. You can not expect to see the same discount in Detroit, Miami or DC as you do in Charlotte. Each area is unique in addition to each neighborhood within any given city or town.
If you are looking for a great home it would be wise to first consider a foreclosure. If there are no foreclosures that meet your needs, the next step is to consider a regular resale home. There are amazing deals available on resale homes. The reality is the foreclosure market has suppressed home prices everywhere.
Call to day and let's start your home search. A great deal and a great home is a phone call away!