Short Sales and Foreclosures
Short sales, foreclosures and bank owned properties can be confusing and intimidating. But, they are three different real estate situations.
1. A short sale simply put, is the sale of a property for less than the current mortgage loan. It is not a bank owned property. The seller is attempting to sell his/her property for less than is owed, contingent on the lenders approval. This process can be lengthy, generally taking 60-90 days. Buyers need to be aware that this is not a normal sale situation and be prepared to wait. But, a buyer can purchase a property at great prices if there is patience and good guidance. For the seller, this is a way to avoid a foreclosure situation and settle with your lender with little or no further financial obligation.
2.A foreclosure is the process in which the lender takes back the property when the owner has defaulted on payments.
3.A bank owned property has already gone through the foreclosure process and is fully owned by the lender/s. Sometimes these properties are sold off to other financial entities and put back on the market. But they are still bank owned properties. Response time is very quick, but there are other requirements that must met. In addition, these properties are sold "as is." Don't count on a home inspection contingency in your purchase offer being accepted.
As with any major purchase, there are issues and risks. But with guidance and patience, you can go through this process with a positive resolution. That is, after all, what you need.
If you would like to find out specific detailed information about how a short sale purchase or sale will benefit you, complete the brief information form below and I'll contact you to discuss your needs. For general information, feel free to read through the tabbed information.
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