So far in our market, my experience with buyers making offers on short sale properties has been difficult, at best. In most cases, the banks have been slow, inflexible or non responsive. They seemed to me like deer in the headlights, unprepared for the process. I’m sure that soon will change.
Dealing with bank-owned properties (already foreclosed, now REO, or real estate owned) has been easier depending on the institution. The best ones are realistic and price to sell, while the worst aren’t and hold out for loan amounts that far exceed market values. As more of these hit the market, the banks will get real, improve efficiency and eventually sell through their inventory.
And what about the social costs? I have a client who would love to buy the house down the street from him for his parents, a bank-owned property that has been through several agents and not enough price reductions. The lender is non responsive. The former agents don’t know what’s going on because the bank doesn’t return their calls. The house is now off the market again, just sitting there, growing weeds, gathering dust, an absolute eyesore in an otherwise nice neighborhood. Did the lender go under? Why the black hole? Here’s a guy who wants to buy at market value, but he can’t get resolution because there’s a faceless, non responsive corporation in charge of this property. Meanwhile, the property rots.
Then there’s the personal cost. The other day I took some buyers through a home in my neighborhood, advertised as a short sale. This home was lovingly decorated, beautifully upgraded, with family pictures on the wall. I felt sad. They seemed like nice people. I don’t know how they got into the situation they were in, but it’s a shame they have to leave this lovely home that they had obviously put so much heart into under these circumstances. I guess I’d better get used to it.
Foreclosure 101: The difference between short sales, foreclosures and REOs. read
If you’re delinquent on mortgage payments and can’t keep up, working with your bank to arrange a short sale prior to foreclosure may be the way to go. read
How do you proceed if you’re behind on payments and your house is worth less than you owe? read
Beware the hazards of the short sale. read
HUD tips for avoiding foreclosure. read
Nevada foreclosure process. read
Yahoo Real Estate’s foreclosure dashboard. see
Foreclosure & REO buying opportunities are not always pretty. read
Foreclosure process overview including tips for buyers. read
Changes in the market will create more opportunities for investors. I’ve always found CRE Online to be one of the best, most interesting investor resources out there.
Dealmaker’s Cafe is another real estate investor community site with lots of resources.
Forced to be a landlord because you can’t sell your house? You’ll find everything you need to know to get started on Mr. Landlord.
