Great Deals In Real Estate
In response to the many questions I get daily on the subject, I am going devote this blog to a brief discussion of great deals in real estate and how to find them in this market." In conjunction with a title company and a lender, I will be holding seminars on this subject, so please give me a call or email if you are interested in attending a free class on Short Sales, Foreclosures and what is involved in purchasing property in these circumstances.
I subscribe to a service whereby each month I get a list of properties that are in default, meaning the owners have missed at least three months of payments. This is pre-foreclosure, and the owners still can sell the home in the open market. They may or may not owe more than the home is worth. This is often a great time to negotiate a good deal!
Short sales occur when the owners – who may or may not be current in their payments – owe more than the home is worth. In most cases, they contact the lenders, and the lenders participate in the sale of the property by approving the price and forgiving a portion of the mortgage to have the property off their books. The buyer can finance the purchase of the home. This is also a great time to find that deal!
Foreclosure is the process whereby the lender takes the house back at public auction, usually at the courthouse. The lender is asking to be paid the amount of the loan, and many times the house is not worth this. Also, the successful bidder must pay cash and accept the property as is with usually no inspections. Not necessarily a great deal and you must be a savvy buyer for this transaction!
Bank-owned property is post foreclosure, and most banks are getting “real.” These homes are priced just below market value or, sometimes, way below. In the 1990s banks had REO departments (Real Estate Owned), which became cumbersome and expensive to operate. The banks seem intent on not repeating that fiasco and are working hard to shed properties as soon as they come into ownership. There are some very good deals in these situations.
Call me at 541-318-9909 or my cell 541-408-6720 or email me at Lconnelley@sunriverrealty.com to sign up for a class on understanding these processes and finding Great Deals!