Sep 03 2008
Buying Foreclosure Property
Buyers looking for a deal usually think that pre-foreclosure homes can be bought at deep discount. Sometimes thats true. However, usually there is a third party (The Bank) involved.
Short Sales
Most of today’s pre-foreclosure homes are short sales- the seller doesn’t have enough equity to close the transaction. A lot of agents won’t even consider showing short sale properties, as they can tie up a buyer for months before hearing back from the bank, and even if the bank accepts the offer, it may never close. Often, the seller has multiple liens against his house, and it can get very difficult to get everyone to sign off on the buyer’s offer.
Bank Owned
After the home goes through the foreclosure process, it usually reverts back to the bank with a clean title. The best deals I have found usually are bank owned properties-they have been through foreclosure, and have clean titles. Another bonus-the banks usually list them at under market pricing, to get them off their books as quickly as possible. They may even offer financing incentives to use them as the mortgage lender, making the deal even sweeter.
In conclusion, when looking for the best deals you might want to consider Bank Owned properties. They often are priced more attractively, and they can usually close in 30 days or less. They may even help you out with the financing.
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