Short Sales/Bank Owned

Short Sales:

Short Sales became very popular after the 2007 real estate market crash.  A Short Sale is a home that is for sale for an amount that is less than what it’s owed on it .  It can take from 3 to 6 months to complete a short sale transaction, when a normal sale takes about 30 to 45 days.  Sellers walk away with no proceeds and sometimes are required to re-pay the balance or a portion of it.  Buyers should not expect repairs when buying a short sale.

Bank Owned:

Bank owned homes, as their names indicates, are homes that are owned by banks or Financial Institutions and have been acquired through the foreclosure process.  They also have become a big part of the inventory as more home owners continue to face foreclosure.  Bank owned homes can be in distressed condition making buyer’s financing a bit challenging.  The upside of Bank Owned homes versus Short Sales, is that banks usually make a decision within 48 hours as opposed to the 3 month average on a Short Sale.

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