Considering Purchasing a Distressed Property? Think Again......!!!
Distressed property is property that is facing foreclosure or property that has been recently acquired by a lender through the process of foreclosure. If you are considering purchasing a distressed property, I urge you to think about it, then think about it again.....get informed and then think about it again before entering into a contract. If that sounds a bit redundant, it's because purchasing a distressed property is a process that is not for the faint of heart. True, distressed properties are often priced below the market to facilitate their sale, but there can be great risk involved in purchasing one.
So how do shortsales play into this?...well....a short sale is any sale where the purchase price fails to pay off the mortgage or other liens against the property and provide a clear title. If a seller is in such a position (often referred to as the seller being upside down in their house) they must obtain consent from their creditors (also known as 3rd party approval) to permit the reductions in the funds required to close and provide clear title to the new owner. Since the sale will require 3rd party approval, buyers often have little control over the process and timeline related to the transaction. I urge you to consult a realtor that is familiar with the short sale process in order to protect your interests during the course of the transaction.
If you have any questions regarding short sales or foreclosed properties, feel free to call on me. I will be happy to assist and help you in determining if purchasing a distressed property is really right for you.