In today’s market home buyers are looking for the deal of a lifetime and honestly, we don’t blame them. The real estate market today is facing a variety of issues causing the amount of distressed properties to rise.
Before you go jumping into a distressed property whether it’s a foreclosure, short sale or bank owned (REO) we suggest you contact an experienced short sale, foreclosure specialist who know how to handle these types of properties.
Buying a foreclosure or short sale property can be very different, both from a standard “normal†sale and from each other. In most cases, the buyer will be dealing directly with the bank and having minimal interaction with the homeowners if any at all. That is why we suggest you contact the Eastvale Real Estate Group, your local short sale and foreclosure specialist.
In today’s market, foreclosures and short sales are the leading types of properties on the market and at times can be acquired below fair market value. Since the banks are in the money lending business they are not looking to hold onto any piece of real estate; therefore, some banks are often letting short sale properties go for 10-20% below market value. Foreclosures are often sold at greater discounts than short sales and normally can close in a shorter amount of time.
Since foreclosure and short sales are often complicated and time consuming, buying a distressed home is not for everyone. The downside as many know when buying a short sale property is the time it takes to negotiate the deal. A typical short sale timeframe can take from 4-8 weeks from the offers submission to the bank before the buyer hears back from the bank and then it can take another 4-8 weeks to negotiate back and forth with the bank; and then another few weeks to close escrow. So do not be surprised if when buying a short sale, it takes 3-6 months from start to finish to close escrow. Although, some banks and lenders are working diligently to cut down the time to as little as 3 months start to finish.
The upside to a foreclosure and/or short sale is the ability to pickup a great piece of property at current or below fair market value.
