FORECLOSURES: Whether it is a downturn in the economy or just a negative financial situation that a home owner gets into, bank-owned (also called Real Estate Owned [REO] or Foreclosed) purchase opportunities can exist and can be a great deal for the right buyer. If you are looking for a bank-owned property, contact us to discuss the details and how the buying process works. We have been finding foreclosures for our clients since the first big wave started appearing in the Palm Springs area in 2006. When you buy a bank-owned property, you are buying it directly from the lender. The benefits of buying property at this stage is that any liens or judgments will already have been eliminated by the foreclosure sale. Depending upon the market at the time, bank-owned inventories can be 10% or more below market value. Most will likely need at least minimal work and some may need major renovations.
SHORT-SALES: Great opportunities may exist for purchasing a home at 10% or more below market value with a property in “short sale” status. Sellers who show hardship to their lender can sometimes get permission from them to sell the property short (meaning for less than is owed to the bank). The seller first gets an offer, then proceeds with their bank to see about getting an approval of the amount. A short sale can require months of negotiations. The offer and the submission of a short sale package documenting the sellers homeowner hardship is necessary. There are no guarantees that the lender will accept your offer and may counter. For those buyers with a good amount of patience and time, the work with a short sale purchase may be worth it. We have been representing buyers and sellers in the short sale process since 2007.