Short Sales have become common in the past few years and may seem like they are showing up everywhere. A short sale is essentially a pre-foreclosure, where the seller owes more than the home is currently worth. They are in the process of getting approval from their mortgage lender to sell the home for less than what they owe, which means the mortgage lender will be short the difference, hence the term short sale.
Here are some facts you should know as a buyer looking at short sales:
I have helped many buyers navigate through the ins and outs of short sales and would be happy to answer any questions you may have about the process and whether pursuing a short sale best suits your buying strategy.
REO stands for Real Estate Owned, which means that the home is a bank-owned foreclosure.
Here are some other benefits of hiring a Buyer’s Agent:
All the homes you will see under the MLS search on Copper View Realty are updated in real time from the Multiple Listing Service (MLS). The MLS is a Realtor ® database that is strictly maintained and managed as the most accurate source of property information. Many other third party websites that are popular among consumers are not as strictly managed and can have out-dated and inaccurate information. Sometimes you will see homes listed on some websites at ridiculously low prices but they may be vendors trying to sell you a subscription to their information service, which is often not the whole picture or really very useful in the real world.
There are a couple of different types of auction sales. One type are the “courthouse steps auctions” and the other type are the on-line auctions. Both involve risks as a buyer but offer different buying terms.
“Courthouse Steps Auctions” involve the most risk for a buyer and the least flexibility in buying terms. The buyer must pay all cash for the property, often in the form of a cashier’s check at the time of bidding. There can be many ins and outs that the pros know to avoid getting burned and there is a lot of research to be done before placing a bid. This type of auction is not for the inexperienced or uninformed.
On-Line Auctions have become popular in recent years and amount to a different way to market and sell bank-owned foreclosures (REO’s). The homes are posted online and buyers may or may not have an opportunity to inspect the home prior to bidding. There often are additional fees charged to buyers (up to 5% of the purchase price) as a premium for the auction service. Buyers often have limited protection from loss of their earnest money deposit and extremely limited seller disclosure regarding the property. However, under the right circumstances the potential to buy a good home at a below market price does exist. I have experience with these types of auctions and am happy to answer any questions you may have.
The real answer is that it depends on several factors. Your credit score, other debt you may have, your income, and the type of property you desire all contribute to the answer. There are many different types of loan programs, including some that require no money down or as little as 3-3.5% down. Consulting with a reputable mortgage lender will help answer all of your questions and help you determine which loan program is best suited for your needs and circumstances. I would be happy to recommend a couple of reputable mortgage lenders who can answer all of your questions.
There are many advantages to owning a home instead of renting. Tax deductions for your mortgage interest and property taxes (please consult your accountant for specifics), the potential for appreciation over time, the opportunity to have the home paid for someday, and the feeling of stability and pride you gain when the home is yours to decorate and fix-up as you please are just a few of the many advantages.
There are a few things you will want to do in order to start down the road to buying your dream home. The best first step you should take is choosing a real estate agent to help you get started. From there, you will need to meet with a lender to obtain a pre-approval letter and find out how much you can qualify for. It’s an excellent idea to make a wish list of things you want in your new home, such as the number of bedrooms, the areas you like, and any things important to you such as a big yard or swimming pool.
Once you have a real estate agent to guide you and a mortgage lender to help you with a loan, you are ready to go home shopping. This is where the fun begins and your agent will guide you through the process of determining the best homes for your needs, writing an offer and going through the sale process. With the right guidance, the process should be fun and exciting.