Beverly MA Foreclosures
Beverly Massachusetts bank owned foreclosures describe property the lender obtains after an unsuccessful foreclosure auction. The lender usually sells the real estate by direct sale or market their inventory through a Realtor. The lender will price the property for a quick sale as they have no interest in maintaining a foreclosed asset. When a Beverly MA home owner defaults on their mortgage, the lender starts the process of obtaining the right to sell that property at auction in order to satisfy the debt. In MA, this process takes a minimum of 75-90 days and if the homeowner contests the process in court or files bankruptcy the delay can be significant. Go to Beverly MA foreclosures to view current MLS listings of distressed real estate.
Massachusetts Foreclosure Law
In MA, non-judicial foreclosure is the most common method; judicial foreclosure is rarely used in MA. Lenders usually have a power of sale clause and must abide by strict notice requirements. If a homeowner files for bankruptcy, the court can overturn the foreclosure sale if sold for less than market value. Therefore, lenders in Massachusetts proceed carefully and follow the requirements set forth in the law. Review Massachusetts Foreclosure law for government legislation about MA foreclosures.
Buying Beverly Massachusetts Homes at Foreclosure Auction
For most potential buyers, purchasing at a foreclosure auction is a "risky" undertaking and, in most cases, buying from the lender after the auction is a better option. Experienced investors understand the process and may have success in taking the risk. As a result, not many Beverly MA foreclosure auctions end with the sale of the property to a bidder other than the lender. The lender takes back the title and takes possession of the property. These properties are referred to as REO (Real Estate Owned) or Bank Owned properties.
Beverly Massachusetts Foreclosed or Bank Owned Real Estate
After a bank (lender, financial institution) takes possession of a property (after an unsuccessful auction), they mitigate items owed by the prior borrower, such as homeowner association fees. The lender also attempts to remove any tax liens against the property. If the property is occupied, the lender will make arrangements for the owner or tenant to vacate by eviction or with financial incentives.The property is cleaned and minor repairs are made to the property. The lender hopes to obtain a higher net sales price with minor improvements. Banks want to sell foreclosed property quickly because they don't want to tie up their money these assets. Additionally, managing a foreclosed property may see further reductions in value and is a "headache". Lenders that have significant REO inventory often have a separate department to manage their inventory. Most lenders hire experienced Beverly real estate agents to market their properties and list their inventory in the Multiple Listing Service (MLS) to ensure full market exposure.
Buyers have the opportunity to view, investigate and inspect the property prior to final agreement to purchase. Some lenders will negotiate repairs and concessions, but in most cases their preference is to sell "as is" at a "discounted price". Banks understand that they must conform to federal and state laws in regards to property disclosure. They usually disclose that they have no knowledge of the property and can make no representations as they have never occupied the property. Banks may or may not provide owner financing on their REOs but in most cases, this would apply only to property that was in very bad condition. A buyer is likely to obtain a better value for properties that need substantial repairs. Buyers with accepted contracts have the option to conduct full home inspections even though the property is being sold "as is". If major problems are found, the lender usually will negotiate to either a substantially lower price or make the repair. Generally, negotiating with a lender is an easier process than negotiating with a homeowner. Lenders are typically unemotional about the process and are interested in making a "good business" decision for the company. It is not in a buyer's best interest to attempt to renegotiate a contract over trivial items that were disclosed or obvious prior to negotiation of the contract. Consider all properties for sale as a Beverly foreclosure isn't always the best value for every buyer. Visit Beverly MA real estate for information about the home buying process.
Negotiating a Contract for a Beverly Property
Before submitting an offer, have your agent obtain all available disclosures and information on the property and ask questions such as: Are there any inspection reports? Has the lender agreed to any repairs not completed? Is there a special "as is" form? How quickly will the lender respond? How is the offer negotiated? Since lenders are not available on weekends and due to the volume of REO inventory, the negotiating process may take longer and create frustration for the buyer. Make sure that your offer contains your "credit" approval which demonstrates your qualifications as a buyer as the lender is more motivated to negotiate with a qualified buyer.
Understand that lenders will sell at "fair" market value and do not expect "fire-sales" that you have seen of heard of in the media. As mentioned earlier, properties that need substantial structural and mechanical repairs will sell for less. There are fewer buyers qualified to buy these properties so lenders will offer greater discounts.
Virtual Homes real estate agents will assist you in the purchase of Beverly MA foreclosures and bank owned real estate for sale. In addition, we can represent you as a Buyer's agent and represent your interests in the property search, research, negotiations, home inspection and closing of the transaction.