Investing on Raleigh Bank Foreclosures Can be a Challenge
In North Carolina, though the mortgage crisis is forcing more and more homes to go into foreclosure, the entire situation on the North Carolina bank foreclosures is not as bad as it is with many major cities in the United States. There were only 4,303 North Carolina foreclosures filed by the end of July 2008, and mostly centering in cities like Charlotte and Raleigh. This translates to one household in 936 that faces foreclosure proceedings. That is not so bad when compared to the ratio of foreclosures in Nevada, the state hardest hit by the mortgage crisis, which is pegged at 1 for every 106 households.
Nonetheless, North Carolina bank foreclosures, including Raleigh bank foreclosures, are still being targeted by real estate investors. The real estate market in North Carolina is still healthy enough, with market values not that depressed, to turn in a good profit. It is highly possible to score a good deal in buying Raleigh bank foreclosures – buy at discount, make some improvements on the property and then sell at market value. The challenge is that real estate investors need to be vigilant in searching for these Raleigh bank foreclosures.
To be able to break into the market of North Carolina bank foreclosures, an investor must constantly be on the lookout for properties nearing default. Depending on the foreclosure type that the investor prefers to work with, being able to spot a good property going through the Raleigh bank foreclosures process early on would give the investor an edge over his competitors as well as enough time to do the research required for the property. Research naturally includes title searches to check if the property is clean or has outstanding liens against it. Because outstanding liens on the land can take away a good chunk of an investor’s expected profits, investors are always advised to stay away from Raleigh bank foreclosures that have considerable senior liens.
Another advantage given by being able to find a good property going through the foreclosure process is that the investor would have enough time to do the math and to secure the financing for buying the property. Doing the math ahead of time will allow the investor to compute how much he would need to make as a maximum offer for the property. It will also let him assess costs for doing improvements and repair work, which is often necessary when it comes to investing on foreclosures. The time allowance will also give him enough room to secure the financing required for buying the foreclosed home.
As much as a lot of preparation is required when investing on North Carolina bank foreclosures, what is perhaps most important is for the investor to know the local state laws governing North Carolina bank foreclosures. Knowing these will help guide him as to the proper progression of the foreclosure process in North Carolina, thus not wasting valuable time and money. There are many consultants that investors can work with in these area, such as real estate attorneys.