Everthing You wanted to Know about Foreclosures
It’s the sign of the times that foreclosures make up a major component of today’s real estate market. Three ways homebuyers buy foreclosures include: Short Sales, Investors/Auctions and REO’s.
Short Sales: In an attempt to avoid a foreclosure, the homeowner and the bank agree to sell the home for less than what is owned. Because three parties are involved (you, seller and bank) and people are losing money, buying a short sale takes a lot more time and work. Know that going into this type of transaction.
Investors/Auctions: The final step of the foreclosure process is a public auction. Many investors buy and rehab such properties, then resale at market value. You can go into the auctions but it’s not advisable as the process is full of risk and requires full cash payments most of the time. And remember, you will also be bidding against sophisticated investors and banks which ultimately can run up or increase the purchase price that home sells for.
REO’s/Bank Owned Properties: Real Estate Owned (REO) Foreclosure means that the property failed to sell to a third party at auction and has reverted back to the bank . Deals are to be had and it’s faster than a short sale but there are more risks as certain disclosure laws do not apply and the properties are often presented AS-Is-Fixers and the bank usually won’t make concessions for most repairs.
For information about available foreclosures on the market today,
please email or call me for more information.
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