|
If you are considering looking for homes that are foreclosures, bank
owned or short sales … First, you should consider hiring a real estate
professional who knows exactly how these types of
properties are handled:
Foreclosure/Bank Owned
What is a foreclosure? A foreclosure process is used when a financial
institution is attempting to take the property that the borrower used
to collateralize the money they received from the lender. Usually this
happens when the borrower fails to do the things prescribed in the note
and deed to trust. The most common reason is failure to repay. The financial
institution would rather work out other arrangements than ultimately take
back the property because it can be a very costly legal process the court
will allow the borrower to reinstate themselves by paying back fee and
interest. There are often good opportunities for investors or buyers to
strike a good deal with foreclosed properties, however you probably want
an experienced agent or team to help you through the process.
Short Sale
What is a short sale? A short sale is when the property is worth less
than what the home owner's current mortgage balance is. This unfortunately
has happened to thousand of homeowners who have purchase their home within
the last two years with an adjustable rate mortgage. While, not everyone
has been affected by the adjustment of the interest rate, a large portion
of homeowners have.
How does the short sale process work? After you have found the property
that you are interested in, you make an offer, though rather than taking
the offer to the homeowner, the offer goes to the lender. This process
is seemingly similar in working with the home buyer, in that the bank
will often counter back. The main difference is often times it takes several
weeks to get approval; on average probably four to six weeks.
What do you do while you wait? You probably want to continue looking
at additional properties … It is not guaranteed that this offer will
be approved. Anyone who has purchased a home in the past knows how hard
it is not to get your hopes up. In a short sale, don't fall in love with
the house, until Andy Brown has the approval letter in his hands.
What do you do after you get approval? You get a home inspection, appraisal
and termite letter. Sometimes, these inspections are covered by the seller,
in the case of a short sale; it will be the buyer's responsibility. In
our experience, banks usually do not do the repairs needed, so be prepared
for that to be case … It would not hurt to be tucking some money
away for those home repairs.
To receive a list of foreclosed, bank owned or short sales in your area
fill out the information below:
|
