Century 21 Real Estate is a worldwide organization offering residential and commercial real estate. Century 21 Realtors are independent agents who either own a franchise office or work as a representative for the franchise owner. With the abundance of foreclosure properties, many Century 21 Realtors now specialize in bank owned foreclosure properties. This type of real estate transaction requires specific knowledge and skills in order to produce successful transactions.
Many Century 21 Real Estate websites publish bank owned foreclosures directly on their website. Details of distressed properties include property location, square footage, amenities, asking price and the name of the agent in charge of the foreclosed property.
There is considerable difference between bank-owned foreclosures and foreclosure properties sold through auctions. Bank foreclosures are oftentimes referred to as real estate owned (REO) properties. When properties are not sold through foreclosure auctions they are returned to the bank. When the bank takes possession of the property, the mortgage note becomes void and the bank can sell the property for the price they desire.
Foreclosure properties sold at auction are notorious for having creditor and tax liens attached to them. When individuals purchase auction foreclosures they are responsible for paying off these liens before they can take possession of the property. However, when the bank takes possession of the property, they negotiate with involved parties to have the liens removed or reduced.
Another common issue with purchasing foreclosure homes through auctions is the buyer will be responsible for evicting individuals still residing in the home. When buying bank owned foreclosures, the bank initiates eviction proceedings and the previous owner (or tenants) will be evicted before the property is placed on the market. Therefore, bank owned foreclosure properties are generally less stressful to deal with.
Buyers interested in purchasing bank foreclosures listed through Century 21 Realtors are required to 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.
Many real estate owned foreclosures sold through Century 21 Real Estate are sold “as-is.” The buyer has the right to obtain a professional real estate appraisal prior to closing the deal. Should the appraisal expose significant problems with the property, the buyer will be given the opportunity to renegotiate their offer.
Two noteworthy benefits of purchasing bank owned foreclosure properties through Century 21 Real Estate include the properties are free of liens and no buyer premiums or commissions are paid by the buyer.
Many Century 21 real estate agents specialize in working with private real estate investors interested in purchasing distressed bank owned real estate. Other Century 21 Realtors specialize in working with banks and asset companies who have multiple foreclosure properties for sale.
Additionally, several Century 21 real estate agents offer numerous real estate services including listing and selling bank-owned properties, maintenance and security of distressed properties, eviction proceedings, interior and exterior clean-up, and maintaining utilities while the property is up for sale.
Bank owned foreclosures are nearly always sold close to market value. If multiple repairs and renovations are required, REO properties can end up costing more money than they are worth. Therefore, it’s crucial to conduct due diligence and ensure the property is a wise investment.
When investing in bank owned real estate, keep in mind many people will need to be compensated for their time. The bank wants to recoup their investment price and the Century 21 real estate agent needs to be compensated for their efforts.
One way to avoid the middleman is to seek out private real estate investors who purchase bank portfolios. By buying in bulk, investors can purchase distressed properties at wholesale prices and pass their savings along to you. It’s not uncommon to purchase bank foreclosures from private investors for as low as seventy cents on the dollar. Cairnhill 16