Buying A Short Sale Vs A Foreclosure Home
Buyers in the current Tacoma, Wa real estate market often ask: What is a short sale? What is a foreclosure and is that the same as a bank owned home.?
In simple terms, a “short sale” is just as the name implies. The seller is attempting to sell the property for less than the amount currently owed to the lender. The lender has to agree to an offered price, thus allowing the sale to be completed. A properly executed short sale can benefit a seller by relieving them of debt owed with less of a penalty to their credit score than having the property foreclosed upon by the lender. A short sale can save a buyer substantial money as well, so it can be a win-win situation. But, it requires patience!
The disadvantage to a short sale lies in negotiating with the lender. Negotiations with the lender typically are not expedient. A buyer may wait for weeks after making an offer, before the lender makes a final determination regarding acceptance of the offer.
On the other hand, A bank owned home (or reo) has already gone through the foreclosure process and is owned by the lender. Often, the negotiation process can be accomplished much faster when negotiating with the lender as their interest is in getting the property off of there books.
One more caveat to all of this. Often, Buyers with little experience convince themselves that purchasing a bank owned home at auction is the best option. This is usually not the case however. Buyers can often buy a bank owned property prior to auction at a lower price by employing an agent to represent them. In addition, an auction homes is an "as is" sale with no opportunity for the buyer to have the home inspected for defects.
For more information, or to view short sale and foreclosure properties visit us @ http://www.vipteamwa.com/contact.php