Posted by: kgreenrealestate | September 9, 2010

Short Sales and Foreclosures

Obviously, in this current real estate mkt. Short Sales and Foreclosures are a predominant subject. The word is, unfortunately, that more Foreclosures are to be released in the future as the banks and Government did not want to “flood” the mkt with such properties.

Short sales(FYI) are where a Seller is in the predicament of needing to sell and owing more to the bank than what the mkt will bear as far as a selling price. The seller still needs to sign any offer that comes in on the home, but the bank has the final say with acceptance. They, of course, have a vested interest in the property, and stand to lose financially from the sale. Depending on the Lending Institution, response from an offer can range very widely time wise. This can become frustrating for a potential Buyer on such a home. As long as said Buyer is advised correctly into what he/she are entering into as far as the process, it most times can turn out to be a good experience, and sometimes a good buy, as well.

Foreclosures are when the bank actually takes possession of the home thru due process. Once they acquire the property back, then, most times, it is introduced back to the mkt for resale. The Public often times think that Foreclosures are “bargains.” The fact of the matter is that there are some good possibilities for purchase, but the Buyer will realize that the properties need work and sometimes extensively. Then again, though, with a mindset about “sweat equity” these homes can turn out to be a great investment!

www.kgreenrealestate.com

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