Guide to Buying NH Foreclosures and Bank Owned Real Estate
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New Hampshire foreclosures and bank owned real estate and REO (Real Estate Owned) are terms widely used to describe properties which are held by a lender after an unsuccessful sale at a foreclosure auction or property obtained by a “deed in lieu.” The financial institution will then resell the real estate by direct sale or market their inventory by using a Realtor. Consumers often benefit by buying New Hampshire foreclosures because the bank aggressively prices them to reflect market conditions. Foreclosures exist in most price ranges and include single family homes, condos, land and multifamilies.
New Hampshire Bank Owned or Foreclosed Real Estate
Bankers want to sell their NH foreclosed property quickly because they don’t want to tie up their money in these assets. Furthermore, managing a foreclosed home may see further reductions in value and is a major administrative expense. Lenders which have significant REO inventory frequently have a separate department to deal with their inventory. In some of these cases, you could buy directly from the lender.
Search New Hampshire Foreclosures for Sale
Most lenders list their foreclosed properties with real estate agents. New Hampshire foreclosures will include inventory of national lenders. These properties are HUD properties (FHA foreclosures), Fannie Mae and Freddie Mac foreclosed real estate. These lenders often offer special financing to home buyers as an incentive to purchase their inventory.
Since most of the REO inventory is listed, you can find NH foreclosures through a search of the NH MLS. Go to Home Search and enter the towns of interest and select foreclosures. Properties listed will include lender approved short sales, short sales and NH bank owned listings.
Negotiating a Contract for New Hampshire Foreclosures
Bank owned property is usually marketed aggressively to sell within 60 days. The lender has to decide to repair or discount properties that require considerable repair, otherwise they will not sell. They do not want to add additional financial risk and hope to sell to investors knowledgeable about this process.
If you are looking at making an offer on a New Hampshire foreclosure, submit documentation that verifies that you are a ready, willing and able buyer. Lenders won’t entertain offers from unqualified home buyers. If you are a strong, qualified home buyer then you will have a negotiating advantage over other buyers.
In addition, lenders will not respond as quickly as a typical seller as they are not available on weekends and manage a number of properties. You must also be prepared to contend with several contracts and may not have the option to increase your offer. The Lender requires their own addendum to the Purchase and Sales agreement which will be provided by the listing agent.
State and Federal requirements relating to property disclosure must be followed by financial institutions and specifically proper lead paint disclosure. They usually disclose that they have no knowledge of the property and can make no representations as they have never occupied the property. Property that has major structural defects or will require extensive repairs will be the buyer’s best value.
The “As is” Clause and the Home Inspection Contingency
Lenders have a Purchase and Sales agreement addendum indicating that they are selling “as is”. This does not restrict a purchaser from conducting a home inspection. If major problems are found, the lender generally will negotiate to either a substantially lower price or make the repair. Generally, major defects must be fixed if the property is to be sold to any buyer. 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 an agreement over insignificant items that were disclosed or obvious prior to negotiation of the contract.
Carol Doleac, a NH Realtor, will assist you in the purchase of New Hampshire foreclosures and bank owned real estate for sale. In addition, she 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.
New Hampshire foreclosures are not always the best values in the marketplace. You can evaluate all properties listed in the NH MLS and view NH real estate for sale.