Century 21 Real Estate agents work with both buyers and sellers. This worldwide real estate organization consists of Independent Realtors who either own a franchise or work as an employee of the franchise owner. Many Century 21 agents specialize in bank owned foreclosure homes and possess the skills to produce successful transactions in this specialty real estate niche.
A large percentage of Century 21 real estate agents publish bank owned foreclosure homes directly on their website. It’s important to note bank owned foreclosures are not the same as foreclosure properties sold through auction.
Bank foreclosures are oftentimes referred to as real estate owned (REO) properties. When foreclosure houses cannot be sold through auction they are given back to the bank. Once the lending institution retains possession of the property the mortgage note becomes void and the bank sells the property for the amount they require to obtain a return on their investment.
Oftentimes, foreclosure homes have creditor or tax liens attached to the property. Occasionally, the previous homeowner refuses to leave the property. When foreclosure properties are sold through auction, the Buyer must take care of liens and institute eviction proceedings if necessary.
Once they are returned to the bank, the lender negotiates to have liens reduced or removed. If the previous property owner refuses to leave the premises, the bank initiates eviction proceedings. Therefore, bank owned foreclosure properties are generally less stressful to deal with.
Buyers interested in purchasing bank foreclosures listed through Century 21 real estate agents must adhere to certain financial arrangements. Typically, the Buyer is required to obtain pre-approved financing and provide proof of funds at the time of their initial offer.
Most REO properties sold through Century 21 Real Estate are sold “as-is.” The Buyer has the opportunity to obtain a professional real estate appraisal prior to closing the deal. If the appraisal reveals problems with the foreclosure property, the buyer will be allowed to negotiate their offer.
There are two major benefits of investing in bank owned foreclosures through Century 21 real estate agents. First, properties are free of liens and second, no buyer premiums or commissions are paid by the buyer.
Some Century 21 real estate agents specialize in working with private investors interested in purchasing property. Others specialize in working with banks and asset companies who have multiple foreclosure properties for sale.
Century 21 real estate agents offer numerous real estate services including the listing and sale of bank-owned properties, maintenance and security, eviction, interior and exterior clean-up, and maintaining utilities while the property is on the market.
Bank owned foreclosures are typically sold near market value. If extensive repairs and renovations are required, REO houses can end up costing more than they are worth. Therefore, it is crucial to conduct due diligence and ensure the property is a financially sound investment.
Last, but not least, many people are involved in bank owned foreclosures. The lender wants to recoup their investment price and the Realtor needs to be compensated for their services.
One option to avoid the middleman is to seek out private investors who purchase bank portfolios. By purchasing in bulk, private investors can buy distressed properties at wholesale prices. It’s very common to purchase REO properties from private investors for as little as seventy cents on the dollar.
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