Recently, while up at Wolf Creek Ski Area, I was asked by a fellow skier how to buy Pagosa Springs short sale properties? I explained to the skier that a short sale is not the same as a foreclosure sale. I told him that there are several differences. Generally speaking a Pagosa Springs short sale is a transaction where the lender holding the mortgage on the property agrees to accept less than the loan balance as a purchase price. The Seller gets none of the proceeds from the sale, but avoids going through the foreclosure process. In Pagosa Springs we are not seeing an abundance of short sales, but it pays to understand how they work because they often represent every bit as good an investment opportunity as a bank-owned foreclosure.
In a Pagosa Springs short sale, the Seller and Lender have agreed to cooperate to achieve a sale of the property rather than allowing it to go through the foreclosure process, which can take several months and cost thousands of dollars. In these situations, typically the Seller remains in the home and continues to maintain it. When the home is turned over after the short sale process closes, it will usually be in better shape than a foreclosure or bank-owned property which can suffer from neglect and deferred maintenance.
We have often found that with short sales in Pagosa Springs the bank will be willing to sell the property at or near the price they set after going through foreclosure, so for a Buyer these transactions can be very attractive. The downside to the Pagosa Springs short sale is that it can take a lot of time to complete. We have found that the banks often move very slowly responding to short sale requests and typically require a lot of paperwork to support a decision on a short sale. For an astute investor that can practice some patience the short sale can provide excellent buying opportunities.
Handled carefully, a Pagosa Springs short sale can be less damaging to a borrowers’ credit record than a foreclosure. If you are a homeowner that is considering a short sale, be sure to engage the services of a real estate broker than has experience in such matters. Call us to discuss Pagosa Springs short sales or for any real estate information or advice….and be sure to get up to Wolf Creek Ski Area and enjoy the sensation powder skiing.