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Northern Virginia Foreclosures

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Real Estate Agent with Long and Foster Real Estate VA License # 0225089470

The Northern Virginia marketplace went from being new construction heavy in the mid-2000's, to being Foreclosure and Short Sale heavy later in the decade.

To talk about a Northern Virginia "Foreclosure" is actually a slang term.  What is actually known as a Northern Virginia Foreclosure is actually a Northern Virgina Bank Owned Home or a Northern Virginia REO.  (REO stands for Real Estate Owned.) 

Northern Virginia Foreclosures are simply properties that have been repossessed by the mortgage company.  The Seller in a Northern Virginia Foreclosure is the bank that repossessed the property.  The person with the authority to accept and sign a Northern Virginia Regional Sales Contract on behalf of the bank is either the Asset Manager (a third party paid to oversee the sale of REOs) or the bank's Upper Management.  

If you are a Buyer looking to purchase a Northern Virginia Foreclosure, getting a Ratified Contract from the bank will take a bit longer than dealing with a regular home owner.  Also expect to purchase your Northern Virginia Foreclosure in AS-IS condition.  What does that mean? 

The bank will not make any warranty about the condition of the property and will usually not make any repairs to the property before settlement.  That doesn't mean that Northern Virginia Buyers shouldn't have a Home Inspection Contingency.  Every buyer should have the opportunity to have a property inspected to see if there are issues that will be too costly to repair, making the purchase of the Northern Virginia Foreclosure no longer feasible.

The Northern Virginia Foreclosure Market is a competitive one.  If you are purchasing a Northern Virginia Foreclosure, be prapared to make your highest and best offer.  Banks do not negotiate in multiple offer situations, so always put your best foot forward when writing on a Northern Virginia Foreclosure. 

Comments(10)

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Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Chris,

Good information..every state is different..thanks for sharing!

Jun 03, 2010 04:41 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Dorie:  Every state is different.  Real estate is local, after all.

Jun 03, 2010 04:42 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Chris Ann, Around here, a cash buyer rules out a buyer with any kind of mortgage for a foreclosure purchase.

Jun 03, 2010 11:03 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Jackie:  I find that Fannie Mae foreclosures are very "primary residence buyer" friendly.   Some banks won't even submit investor offers for a week after it's been on the market.

Jun 04, 2010 03:50 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Great explanation for this, Chris Ann - thank you.  You made it sound so simple!

Jun 04, 2010 09:09 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Margaret:  When you've been swimming in REO for three years, it becomes second nature.

Jun 04, 2010 09:39 AM
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Assistant

Hi Chris Ann~ Great job defining Foreclosure.  I remember the first time I heard the term REO I thought the person calling didn't know what they were talking about!

Jul 16, 2011 05:30 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Donna:  Reminded me of the band REO Speedwagon.  I heard that REO in the case of the rock band stood for Rotten Eggs and Onions.  Doubt that's true.

Jul 16, 2011 06:16 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Chris Ann:  I got here to this post from your current post on Kingsbrooke... through the "foreclosure" link.  As Donna said in #7... what an excellent job in defining Foreclosure. 

And... what an excellent presentation, and coordination of all of this you have put together, here.  I think I visited four of your posts through the links... Kingbrooke, a mini-Foreclosure class, PUDs, and Market Reports.  What an excellent education as a "whole" they provide to anyone, buyers and/or Realtors, who take the time to navigate the links.

[This is about as close to being perfect as an agent can get.  I was about to say this all was perfect... until I saw you had two "r's" in the word "Shorrt" in the first line of this post... LOL.  Correct that, and... you're "perfect."]

Seriously, as far as this "blogging stuff" is concerned... I do not know how anyone... any buyer or seller... after Googling and finding all of this... I don't know how anyone could make any other choice of a Realtor to work with... than you.

       February 22, 2013

Feb 21, 2013 07:33 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Karen Anne:  Thank goodness you stopped by.  Correcting that now.

Feb 22, 2013 04:48 AM