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Judy Leonetti
(916) 223-2318
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So you want to buy a Real Estate Owned (REO)
Or a Short Sale home?
Short Sales:
What is a Short sale and how can you buy one?
Well a short sale is when a seller is being foreclosed upon and they want to try to sell the home before the bank tries to sell it at a Trustee sale or gets the home back REO. The seller is trying to selling the home for less than what is owed on the home-thus Short Sale. This is a process that will need to be approved by the lender and negotiated with the lender. Your agent should always make sure that all lenders (1st, 2nd etc) has already approved that the property can sell in a "Short Sale" situation or it will be a waste of time for everyone involved. A short sale can take not only weeks but sometimes months for an approval and also to close. A lot of times it is worth the wait if you are getting a great deal! Call for more details on this process.
Buying a Bank Repo Home or Real Estate Owned Home:
What is a Bank Repo, or REO-Real Estate Owned?
An REO property is when the bank takes back the home after the home does not sale at a Trustee sale. Now that the bank owns the property they want it SOLD!
The REO is usually a better and faster way to go, but remember you are still negotiating with the bank aka lender. So it may take 48 hours for them to reply or a week, it really just depends on how backed up they are. Also remember banks are closed on the weekends so don't expect a response from them during the weekend, but your agent should always be able to reach the agent listing the property.
The process of purchasing an REO really depends on the lender, you may need a special form or be pre-approved by a specific loan officer or bank before the lender will take your offer, your agent should advise you of the special circumstances that the lender may require before you submit the offer. Other than that once your offer is accepted then the process is very similar to a normal real estate purchase.
Remember that these are bank approved transactions, and the majority of the REO's and Short Sales will be an "As Is" Sale.
They may not want to put more money into the repairs of a home -but if it does not say "AS IS" on the listing then try to negotiate some repairs that may be needed.
I would love to assist you in finding your next home - fill out the form below to get more information about REO or short sale homes that are currently on the market: |
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