Short sales and foreclosures can be quite attractive to buyers and with good reason. They are generally offered so far below assessed value that they are simply irresistible. However, it is important for buyers to understand what is involved in purchasing a short sale or foreclosure listing.

Short sales and foreclosures are almost always sold “as is”. If the house needs repairs, don’t expect to receive any credit for them, nor will you be able to negotiate these items. The same goes for missing appliances. Just be aware of the condition of the house and factor replacement or repair costs into your budget.

Patience is definitely required when buying a short sale property. It is not unusual for a short sale or foreclosure transaction to take six months or more to close. If you are flexible on the closing date and don’t have anything to sell, this may work for you. The savings could be worth the wait. But keep in mind that after months of waiting, the bank may ultimately decide to reject your offer. Being able to roll with these setbacks and frustrations will make the process go easier for you.

Finally, when it comes to short sales, lenders like cash offers with no contingencies. If you don’t have the cash, at least make sure your financing is in order, and you have a substantial down payment. The idea is to make your offer as attractive as possible.

Short sales and foreclosures are not easy transactions for buyers, but if you have a real estate agent with a good grasp of the process involved, and a healthy dose of patience, buyers can certainly reap the reward for their efforts.  To see a list of short sales or foreclosures available in South Gwinnett, Georgia, give me a call.

The difference between a foreclosure and a short sale is not an overpowering conundrum, it’s just confusing, especially if you have no real estate or financial savvy. Basically, a short sale is property owned by a lender, be it a bank or credit union, wherein the sale becomes a discounted payoff that the lender will accept which is less than what the borrower actually owes on the property. In a foreclosure the situation differs somewhat because the homeowner is unable to make his or her PITI payments on the property, ergo the lender can seize the property and sell it as per the original mortgage agreement signed by both parties. In plain English, with a short sale you sell your home with bank approval; with a foreclosure you lose all rights of ownership – period.

In a foreclosure, the homeowner loses the property back to the original lender, they sell it and try to recoup as much cash as possible for the headache caused. Depending on the laws in your state, you, the former homeowner, will remain liable for the deficiency the bank does not receive and could be sued in court. This is the time you need to reread the paperwork you signed with the original lender to avoid a deficiency judgment.   It is also a good idea to find a real estate expert in your area that is familiar with your foreclosure and short sale laws.  In a short sale you can attempt to cut a deal with the lender to try and sell the home, not owe the bank or other lender any money, and relieve yourself from any further obligation.

Again, foreclosures and short sales, the processes, benefits and downfalls, etc. are confusing and you will want to align yourself with not only a real estate agent, but one that has spent a lot of time working with the banks and community.  I have been involved in real estate for the past 33 years, and it has become 60-70% of my current transactions.  I can help you understand the in’s and out’s of foreclosures and short sales whether you are interested in buying one or selling one– give me a call!