Here on the Outer Banks of NC we are asked often by potential buyers, "Are there any good deals on Outer Banks (OBX) foreclosures?"
We tell them, "Of course there are deals on foreclosures here in the OBX--come on down!"
...And then we begin the litany of reasons that foreclosure buying is not for the timid. Firstly (probably as in many places around the country), most foreclosure properties in the OBX need work. The houses and condos have usually been stripped of most or all appliances, many have missing doors, hardware, flooring or trim, and some are simply in disgusting shape.
But everything can be fixed, and for buyers not afraid of some dirty work there really are some great deals here on our little "edge" of the United States.
In the OBX real estate market, foreclosure bank/sellers list with any local brokerage firm who places their properties in the MLS just like any normal, private seller would, with compensation offered to both sides like any normal co-brokerage sale would be.
The differences between regular sales and foreclosure sales in the Outer Banks market are in the mechanics of the deal and sometimes in the financing. The typical offering-to-closing procedure is often changed depending on the bank and Asset Management company (AM) the bank has hired to administer the sale on their behalf.
Some Outer Banks foreclosure properties are in such condition that federally-backed or -insured mortgage lending is not possible. Some properties are missing the HVAC system so they cannot be financed, some are missing hot water heaters, some have missing interior walls, or deck parts missing. And some cannot even be fully inspected before purchase because occasionally the utility companies will not allow re-connect due to compromised or hazardous electrical wiring or large outstanding bills.
This is just a tiny glimpse into the fascinating and potentially rewarding foreclosure situation here on our stretch of sand. It's sad to think about folks losing property, but the great thing about our free market is that another person can come along and buy the property at an affordable price and turn the property back into a viable home and a potential asset to the neighborhood, and therefore help keep property values up in the OBX overall.
Subscribe to CommentsComment