North Carolina Foreclosures: Great Deals On Outer Banks Real Estate
The Outer Banks real estate market has changed dramatically over the past couple years, especially with North Carolina bank foreclosures and short sales. Back in 2008 the Outer Banks saw a large increase in foreclosures (around 150 properties). At that time the lenders were foreclosing on properties shortly after people were delinquent 90-120 days on their mortgage payments. As the economy worsened and the financial crisis hit, the banks were delaying foreclosure proceedings on delinquent loans as much as a year. As a strategy for keeping people in their homes, many Outer Banks oceanfront lenders were aggressively trying to modify loans for consumers in efforts to minimize their losses; with little success.
As we approached the second quarter of 2009 the Outer Banks NC beach saw a flip flop of foreclosures and short sales properties listed in the Outer Banks real estate market (a short sale is when the seller's lender is accepting a discounted payoff to release an existing mortgage). At the peak, there were 150 foreclosures to the 50 short sales on the market. Although there was some modification of loans, it seemed that it was eminent that people could not keep up with their mortgage payments, and that North Carolina bank foreclosures were continuing on. In the second quarter of 2009 we saw the number of short sales hit almost 200 and the foreclosure inventory drop to around 50. North Carolina bank foreclosures usually net the banks less money when they are sold, so letting consumers sell their property "short" was in the lenders best interest.
Keep in mind that many people in the market have been polarized in thinking that short sales and Outer Banks oceanfront foreclosures are the best deal out there. This is anything but true, as there are many Outer Banks NC beach properties that are priced better than the distressed property. Foreclosures and short sales only make up about 7% of the property listed on the Outer Banks real estate MLS. There are many property owners that can compete with the distressed property market, and is often overlooked by the investor looking for a great deal (especially the Outer Banks oceanfront property).
As we approached the second quarter of 2009 the Outer Banks NC beach saw a flip flop of foreclosures and short sales properties listed in the Outer Banks real estate market (a short sale is when the seller's lender is accepting a discounted payoff to release an existing mortgage). At the peak, there were 150 foreclosures to the 50 short sales on the market. Although there was some modification of loans, it seemed that it was eminent that people could not keep up with their mortgage payments, and that North Carolina bank foreclosures were continuing on. In the second quarter of 2009 we saw the number of short sales hit almost 200 and the foreclosure inventory drop to around 50. North Carolina bank foreclosures usually net the banks less money when they are sold, so letting consumers sell their property "short" was in the lenders best interest.
Keep in mind that many people in the market have been polarized in thinking that short sales and Outer Banks oceanfront foreclosures are the best deal out there. This is anything but true, as there are many Outer Banks NC beach properties that are priced better than the distressed property. Foreclosures and short sales only make up about 7% of the property listed on the Outer Banks real estate MLS. There are many property owners that can compete with the distressed property market, and is often overlooked by the investor looking for a great deal (especially the Outer Banks oceanfront property).
Source...