New Bern NC Bank Owned Foreclosures For Sale

New Bern NC Top Website to search for Homes

Realtor Steve Tyson

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There are Hundreds of Real Estate Brokers in the New Bern area. Why would you choose the Tyson Group?

Click Here to find out why!

If you would like a list of current Bank Owned properties in the New Bern NC area, send me an email at

SteveTyson@NCmove.com

Buying a Bank Owned Home or a Foreclosure is easy.

The Tyson Group believes that Real estate is a great investment for the average family. Want to know some of the hot stock my stock broker gave me in past years? Let's see, World Com was a good one. My $2000 investment was worth about a nickel when I sold it. Here is the last must buy he gave me, AIG. My $5000 investment is worth about $10 dollars. It will never recover to it's past value.

On the other hand while Real Estate could go down in the short run in almost every instance it will go up in the long run, and it always has value whether you live in it or rent it out. And unlike stock it will never go to zero. What tangible use do you get out of stock?

That said, The Tyson Group philosophy is never borrow more than you can afford.

Our Website will enable you to search for Bank Owned and Foreclosed Homes currently for Sale in New Bern, Havelock, and Oriental.

Folks often have the perception that buying a bank foreclosure is the way to go these days. You need to understand that just because the bank has foreclosed you will not automatically be getting a good deal. This may be the case, but often it is not. Many times homes go into foreclosure because the owner had little or no equity in the property or because of the condition of the property. You need an experienced Realtor to help you discern if you are getting good value on a bank owned or foreclosure, or any other home.

Buyers of Foreclosures need to be aware of the possibility of unpaid liens, mortgages, taxes, construction loans, homes equity loans, and second or perhaps 3rd mortgages. They would likely become your problem if you buy Real Estate at a foreclosure auction. The foreclosure process usually works like this. The bank buys the property back for what they are owed at the court house auction. They then list the property with a Real Estate Broker that specializes in selling Bank Owned Property. Once it is listed it usually goes on the Realtor Multiple Listing Service and is accessible to all the other Realtors in the area.

If you bid more than what the bank is owed on the property at a foreclosure auction, you might get the property. Usually there is a time period of 10 days in which someone else can upset your bid if they up it by 3% or some other amount. If you buy a home at a courthouse auction you had better know what you are getting into. Unless you know what you are doing you are better off buying the property from the bank once they have foreclosed on it. Then you will get a Warranty Deed from the bank and title insurance from a Real Estate Attorney.

How the foreclosure process works in N.C.

If you're afraid that you're about to fall behind on your mortgage, you should contact your bank as soon as possible to try to work out a new payment plan. You should also talk to a HUD-approved counselor, even if the bank has already started foreclosure proceedings against you. You should be able to negotiate with your bank up until the final sale date. See www.ncforeclosurehelp.org for more information.

A house doesn't go into foreclosure as soon as a borrower misses a payment. It can take months or even years from the time that the borrower first defaults until the house is actually repossessed and the borrower is required to leave.

North Carolina's Administrative Office of the Courts calculates there were nearly 53,000 foreclosures started in the state through the end of September, but not all of those will end in actual foreclosure sales or repossessions. The N.C. Commissioner of Banks' office estimates that about half of the foreclosure starts in North Carolina actually become foreclosure sales.

Here's how the foreclosure process works in North Carolina.

STEP 1

The borrower defaults on his mortgage payment, and the bank starts sending letters threatening foreclosure action. Typically, the bank waits about 90 days before referring the case to the trustee. The trustee is a person, usually a lawyer, who is supposed to be an impartial party who makes sure that everyone in the foreclosure process is notified correctly.

STEP 2

The trustee notifies the borrower that he is going to file foreclosure papers, then files at the county courthouse and gives the homeowner notice that there will be a hearing at the Clerk of Court's office.

STEP 3

At the hearing, the trustee must prove that there is a debt, that the borrower is in default, that the mortgage agreement gives the bank the right to foreclose, and that the homeowner has been properly notified. The borrower can appeal if he can show that the trustee can't prove one of these facts.

(If the homeowner has some other line of defense - for example, he might say that the bank hired debt collectors who harassed him - then he has to file a separate lawsuit and get an injunction to stop the foreclosure filing from moving forward in the Clerk of Court's office.)

North Carolina law also requires the bank to show that it has tried to resolve the delinquent loan without resorting to foreclosure; usually, this means it has to show that it tried to work out a mortgage modification with the borrower. The clerk can grant an extension of up to 60 days if she believes that a mortgage modification could probably be worked out.

STEP 4

If the clerk allows the foreclosure to move forward, then the trustee posts a notice of sale at the courthouse and publishes another notice in the newspaper, usually the Mecklenburg Times. The trustee must also notify the homeowner.

STEP 5

The foreclosure sale is conducted by the trustee at the courthouse. In Mecklenburg, the sales happen in a designated area on the first floor. Anybody can bid at the sale. The bank usually bids the amount it is owed, although sometimes it will bid less to try to stir up interest in the property.

STEP 6

The trustee files a report of sale at the courthouse. There is a 10-day "upset bid period" where anyone can place a higher bid, as long as it is at least 5 percent more than the previous bid. The borrower can also file at any time for Chapter 13 bankruptcy protection, which will temporarily stop foreclosure proceedings.

STEP 7

If no upset bids are placed, the trustee files the final sale report and the delinquent borrower must leave the house. If the bank is the new owner, the property is called bank-owned or real-estate-owned. Most people who buy foreclosure properties buy them from the bank, rather than at the courthouse sale.



Sources: Mecklenburg County Clerk of Court’s office, N.C. Commissioner of the Banks’ office, Charlotte attorney G. Martin Hunter, Charlotte attorney Peter J. Underhill

If you would like a list of current bank owned properties in the New Bern NC area, send me an email at

SteveTyson@NCmove.com