CALL 800-634-2192 FOR A SHORT SALE LIST OR FORECLOSING LISTINGS
If you are contemplating buying a bank owned house, puchasing a short sale home from a bank reo department from an Arizona bank or any bank, please be careful in making sure that you have all of your ducks lined up. Lender owned properties by nature carry a precautionary tag. Every bank has an reo services department who specializes in selling these assets. These banks are in the business of making their money by loaning money, not holding onto large physical assets like a house that has been foreclosed on. Every bank reo department has the task and desire of selling these housing assets for the most money possible in a multiple offer scenario if possible. Their job is to get the highest and best offer on each one of their reo and short properties.
There are areas of concern in knowing how to buy a short sale which is a property that the bank holds the note and the natural seller (person or entity) who owes the note to the bank is trying to "short sale" the property by selling it back to the bank for less than they owe and buying reo which is a property on which the bank has already forclosed on it, owns it outright, and wants to resale it to another party. Remember banks are in the business of lending money, not holding assets like houses. They want to get them off their books. Every natural seller selling short sale needs permission from the bank to short sale the property obtains a short sale bank approval on the property. Once the natural seller receives short sale bank approval they put the property on the market and those buyers who are in the market of buying a short sale home also need short sale bank approval on the short sale purchase price that they offer. Century 21 Seago can provide you with a short sale list and more foreclosing listings. Just email us at info@c21seago.com or call us at 1 800-634-2192.
Buyers who make short sale offers whether it is to live in as a principle residence or a short sale on investment property or buyers who want to are in the market of purchasing a bank owned property need to be viligent in purchasing such properties. Here are three considerations to keep in mind in undertaking a purchase of a short sale property or buying reo prperty:
1) NO PROPERTY DISCLOSURE OR LIMITED PROPERTY DISCLOSURE:
Banks will not be in an REO contract that provide any previous history of the condition of the property on bank owned reo properties. It protects their liability by feigning ignorance. In the case of short sale properties, there is a natural seller to the property but in the case that if a natural seller abandons the property or does not live on the property as is the case in an vestment short sale property by an investors, the buyer may have limited or no access to a historical disclosure on the property. Hiring a qualified inspection company and asking home owners in the immediate vicinity of the subject property just makes great sense considering the size of the investment.
2) NO MAINTENANCE OR LIMITED MAINTENANCE ON THE PROPERTY:
A short sale property or an reo bank property is a property that no doubt has had a true lack of upkeep because of the finanical condition of the seller. Banks will do only what is necessary to put minimum upkeep on a property that they view the buyer is getting as a bargain. Buyer beware and always, always ordered a termite and general inspection even if it is not called for by the terms of the transaction even by the mortgage company or a cash deal where no requirments may be required.
3) THROW DEADLINES OUT THE WINDOW:
Whatever is promised by the bank, whether it be working with a natural seller with a short sale property or a bank owned reo property, don't treat this transaction like a normal real estate transaction. Nothing and I mean nothing is going to go as planned. The seller in the case of a short sale, the bank in a reo property all know you are getting a great deal and they are in no hurry to be part of your financial success story. So if you have a time line and are in a hurry, a short sale and a reo bank owned property is not for you. Too many people and things can go wrong and you can prettyy much guarantee that like murphy's law they will. Think of these properties as investment properties where you the buyer are happy whether or not the property closes on time because you are getting a very good real estate investment. If it is a principle residential property, you are looking for, have alternative housing in place in the event that the property doesn't close on time. Chances are it won't .
Call us for short sale property information or reo bank property information at 1(800) 634-2192.
