Short Sales and Foreclosures!
There are Many Great Deals out there. Some Homes in Great Shape and some Homes that have been neglected and need varying degrees of work. However, to take advantage of these Great Deals, you must be patient.
Buying a Short Sale or Foreclosure takes Much longer to put together and close on than a conventional purchase. You will find that there is no set time frame for approval, you are at the mercy of the Banks. Also, a lot depends on how far along in the process the Seller and Bank are. If the Short Sale is in the beginning stages, it is very frustrating. You are always looking for, or waiting for answers. There are processes that the Home Owner must follow, first they have to be behind on their Mortgage. Ideally, they have had to have put their home on the Market and not been able to sell it for a Price above what they owe on the home. Owing more on the home than what you can sell it for is being "Upside Down" on the property. The Seller, usually with the help of a good attorney who is used to working Short Sales, has to send a Hardship Letter and HUD Statements along with all other forms requested by the Bank. The experience has been that, if things are not prepared in full from the beginning, it will take much longer for an approval. Once the Bank has everything they need, they will process everything into their system, assign a negotiator and order a BPO. This normally takes between 1-2 weeks. Once this is done, then and only then, there is a good chance that negotiations can begin. The unknown is when the Bank will have their part done. Unfortunately, with the increase of Short Sales and Foreclosures there are many more homes to be processed than the Bank has people to process them. Part of the delay is the log jam in the system and where each home is in the stack of progress. If everything has been processed correctly, thing can move along in a timely fashion, if not - be prepared to wait.
Negotiating a Short Sale or a Foreclosure is completely different from a Conventional Sale, due to the fact that we are negotiating with a Bank instead of an Individual. The Negotiations are based on Facts and Numbers, not emotions. Of course a Short Sale would take place before a Foreclosure would. A Bank does not want to foreclose unless it is absolutely has to, they don't want the house, they want their money. So in most cases, if you are realistic, a Short Sale deal can get put together, saving you and the bank a lot of money.
However, if you are under time restrictions, like coordinating the closing date of a home you are selling and trying to get into a new home without interim housing, or financing, most likely a Short Sale or Foreclosure is not for you. But if you are willing to patiently wait and can let the process run it's course, you stand to do very well in purchasing a home at a great savings.
Buying a Short Sale or Foreclosure takes Much longer to put together and close on than a conventional purchase. You will find that there is no set time frame for approval, you are at the mercy of the Banks. Also, a lot depends on how far along in the process the Seller and Bank are. If the Short Sale is in the beginning stages, it is very frustrating. You are always looking for, or waiting for answers. There are processes that the Home Owner must follow, first they have to be behind on their Mortgage. Ideally, they have had to have put their home on the Market and not been able to sell it for a Price above what they owe on the home. Owing more on the home than what you can sell it for is being "Upside Down" on the property. The Seller, usually with the help of a good attorney who is used to working Short Sales, has to send a Hardship Letter and HUD Statements along with all other forms requested by the Bank. The experience has been that, if things are not prepared in full from the beginning, it will take much longer for an approval. Once the Bank has everything they need, they will process everything into their system, assign a negotiator and order a BPO. This normally takes between 1-2 weeks. Once this is done, then and only then, there is a good chance that negotiations can begin. The unknown is when the Bank will have their part done. Unfortunately, with the increase of Short Sales and Foreclosures there are many more homes to be processed than the Bank has people to process them. Part of the delay is the log jam in the system and where each home is in the stack of progress. If everything has been processed correctly, thing can move along in a timely fashion, if not - be prepared to wait.
Negotiating a Short Sale or a Foreclosure is completely different from a Conventional Sale, due to the fact that we are negotiating with a Bank instead of an Individual. The Negotiations are based on Facts and Numbers, not emotions. Of course a Short Sale would take place before a Foreclosure would. A Bank does not want to foreclose unless it is absolutely has to, they don't want the house, they want their money. So in most cases, if you are realistic, a Short Sale deal can get put together, saving you and the bank a lot of money.
However, if you are under time restrictions, like coordinating the closing date of a home you are selling and trying to get into a new home without interim housing, or financing, most likely a Short Sale or Foreclosure is not for you. But if you are willing to patiently wait and can let the process run it's course, you stand to do very well in purchasing a home at a great savings.
posted by SoldByWallen-Bob Wallen at 9:36 AM
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