Purchasing a Short Sale or Foreclosure Property
Foreclosure and short-sale properties continue to be a large part of the local market. These properties can be a good value for the Buyer who is willing to put some elbow grease and money into restoring these homes to their former beauty. Financing to help you make a distressed property your dream home, may be available to you.
Buying a foreclosure property is different than buying a short sale property. A foreclosure property is already owned by the lender and decisions are often made by the lender quite quickly when an offer comes in. It is possible to close a foreclosure property quickly, provided the buyer is paying cash or has financing in place at the time of offer. In many cases the lender will only give a limited time to close and they will charge a per diem if the deal does not close on time.
A short sale is different in that the Seller of the property is not the lender but either an individual, corporation, LLC, etc. The Seller has come into a hardship that prevents them from continuing to pay their mortgage and therefore must sell the property for less than what they owe. In this case, the seller must accept the offer and then the accepted offer along with paperwork supporting the hardship must go to the loan servicer/lender for review before the servicer/lender negotiates with the actual investor for approval of the deal. The investor can accept, reject or counter the deal. Since there is a list of documents that are required by the servicer/lender that must be submitted with the offer, it may take some time to get all the required documents to the servicer/lender so they can move the file forward.
Once the investor approves the short-sale there will be a limited amount of time the buyer has to close the deal. Generally, short sale and foreclosure properties are sold in “as-is” condition. The condition of the property will have a bearing as to what type of financing, if any, a buyer would be able to obtain.
A team of real estate professionals are key to getting these types of deals done. Call me and lets discuss your goal and I will show you how I can be of HELP! You can reach me at 203-816-5285 or via email at email@example.com