Short Sales & Foreclosures – Buying Homes in Peril
By admin at 15 November, 2009, 7:02 pm
The economic climate of the past year or so has led to the proliferation of homes in distress, facing short sales & foreclosures; lots of of these homes have made it to market where buyers are hungry to snatch up deals. While lots of prospective home buyers are eager to lay claim to five of these possible bargains, the fact is that not all of these homes will be a bargain.
Properties that haven’t yet progressed to the foreclosure stage are called short sales. Short sales are homes that are worth less than what is left owing on them & are subsequently sold for less than what is owed on their mortgage. A short sale can free a homeowner from their debts from the home, but can leave them still owing if their lenders won’t negotiate a settlement on the funds owing. Short sale homes may have liens on them from over mortgages as well; sometimes they’ll have debts connected to them based on unpaid utilities or taxes as well. Short sales can also take a long time to complete, so if you are in a hurry to buy a home they are likely not a nice choice.
What is important to remember though, is that not all foreclosures or short sales are a nice deal.
Due to the emotional investment that lots of homeowners have in their homes, foreclosure can result in some passionate retribution from owners who have been foreclosed on, resulting in full-scale vandalism. Some homeowners who have suffered foreclosure strip their homes of anything that might be able to fetch a few dollars or attempt to cause as much destruction as they can to the home before they vacate. Some homes are stripped of all appliances, cabinets, & copper pipes & wires, which can cost the new owners thousands of dollars to repair & replace.
Foreclosures, in contrast, are bank owned properties which can be a faster & more straightforward purchase. There’s a few dangers in purchasing a foreclosure; foreclosures are usually sold as-is & consequently there is no option to have any problems repaired before you take possession of the home. Lots of foreclosure homes are auctioned with no opportunity to even have the home inspected so it can be hard to have a nice idea what a given property is worth.
The best way to avoid thousands of dollars of unexpected costs is to engage a realtor who has experience with short sales or foreclosures, whichever you are looking to buy in to. An experienced agent on your side in this sort of endeavour is essential to make your investment progress smoothly & without any pricey pitfalls.
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