Short Sales and Distressed Properties
Basically there are 2 types of "Distressed Properties."
Short Sales
A short sale occurs when a lien-holder ( typically a bank or lender ) agrees to take a loss when the property is sold, rather than to proceed into forclosing on the home.
The vast majority of lenders will require a borrower to fill out a "short sale package." The lender will review the financial assets of the borrower and attempt to work out a settlement on the sale of the home.
Successfully buying or selling a home as a "short sale" is a tricky, time consuming process that can take anywhere from 60-120 days. In addition, real estate laws allow multiple offers to be accepted by the borrower, while the lien holder takes their time and reviews them all.
All of the variables and conditions are far more complicated than what can be covered here. If you think you have to sell your home and are going to be short, or if you want to try to negotiate the "deal of a life-time." Please contact me. I have successfully negotiated both the sales and purchases of multiple short sale transactions, I can help.
Foreclosures
A forclosure or REO property is really a standard real estate transaction. The only difference is that the owner/seller of the property is the bank or lender. These homes are listed on the MLS just like a traditional home sale, and depending on the motivation of the seller, some are good deals and some are not. A bad house, is a bad house-- at any price.
If you are considering the purchase of a foreclosure home, you need someone who will give you an honest, unbiased oppinion on whether there is real value in the purchase or if you should keep looking.
