Is a prequalification letter necessary to view a property for sale?

Each individual buyer’s agent sets their own policy regarding this issue. Some agents choose not to show a property if the prospective buyer has not been prequalified; others will. However, a prequalification letter is necessary to place an offer on a property; in order to be prepared when you find the home that is right for you, we highly recommend all buyers be prequalified. You can contact your banker to be pre-qualified  or call our office for a mortgage lender recommendation.

Getting prequalified for a home loan takes the guesswork out of home shopping. Once you’ve been prequalified you have a better idea of loan type, price range and payment and can begin the truly exciting work of finding the home that is perfect for you.

What is an REO property?

REO stands for Real Estate Owned. An REO property is usually a bank owned property.

Who is HUD and what is a HUD home?

HUD is the Department of Housing and Urban Development. Not all foreclosure properties are HUD homes; only those acquired by HUD as the result of a foreclosure action on an FHA-insured mortgage. HUD  offers these properties for sale at their market value, in their “as is” condition, to cover the loss on the foreclosure claim.

Who can purchase a HUD home?

Anyone can purchase a HUD home. On FHA insurable homes and FHA insurable with escrow, only owner-occupants may place a bid in the first 30 days, but after that it opens up to investors. On homes that are not FHA insurable, the properties open to investor bids after 5 days.

Does HUD do any financing?

No, the buyer is responsible for arranging their financing to purchase a HUD home. FHA offers a special loan program called the 100 Dollar Down program that allows FHA qualified buyers to purchase a HUD owned home for a $100 down payment.

Does HUD offer any special programs to benefit members of the community?

HUD’s Good Neighbor Next Door program allows Policemen, Firefighters, EMTs and K-12 Teachers to purchase certain HUD homes at 50% of the appraised value. Qualified buyers must be actively employed in the appropriate profession and agree to live in the home for 3 years. For more information on the GNND program visit HUD’s website orPEMCO’s information site

Where can I find out more about HUD homes for sale?

Our inventory includes HUD homes. To find out more about the process we recommend you visit PEMCO or to search the national database of HUD homes, please visit HUDHomestore. In addition we have HUD experts available during business hours; simply call our office HUD line at 704.366.2042 Monday thru Friday 8:30 am-5:30 pm and ask for Adam or Lisa. Or e-mail us at

What is Fannie Mae?

Fannie Mae is the Federal National Mortgage Association. Fannie Mae was created in 1938 as part of the New Deal. It is a government sponsored enterprise with the purpose of expanding the secondary mortgage market by turning pooling residential mortgages with other contractual debt and selling the consolidated debt as bonds. Fannie Mae operates under an implied guarantee from the US Treasury. Find out more about Fannie Mae or Search for Fannie Mae properties.

Can your properties be rented or purchased on a lease-to-own program?

The majority of our listings are REO properties and as such are for sale only. We recommend Stikeleather Realty or TR Lawing if you are looking for rentals.


To familiarize yourself with the practice of Agency (Buyer’s Agency, Seller’s Agency, Dual Agency) we recommend everyone read Working With Agents , a publication from the North Carolina Real Estate Commission.