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Replies (14)
- Michael Emery, "MikeEmery"
- Contributions:7296
A bank owned property is a home that a bank has taken back after a foreclosure. The property is owned by the bank.
A short sale is when a homeowner still owns the home but is selling the home at a loss and the bank that hold the mortgage is taking the loss.
The big difference between a bank owned home and a short sale home is the if you make an offer on a short sale home, both the homeowner and their bank have to agree to the sale. With a bank owned home you are negotiating only with the bank.
Buying a short sale home, from the day you make the offer to final acceptance by the homeowner and bank takes much longer than any other kind of purchase. So if you are renting and need to be out by a certain date, stay away from short sale homes and stay with foreclosed or traditional sales.
Short sale homes and bank owned homes are almost always sold 'as is' and they will rarely make repairs as part of the sale.
No matter what kind of home you buy, you will have to pay for the inspection. That way you own the information uncovered in the inspection.
A short sale is when a homeowner still owns the home but is selling the home at a loss and the bank that hold the mortgage is taking the loss.
The big difference between a bank owned home and a short sale home is the if you make an offer on a short sale home, both the homeowner and their bank have to agree to the sale. With a bank owned home you are negotiating only with the bank.
Buying a short sale home, from the day you make the offer to final acceptance by the homeowner and bank takes much longer than any other kind of purchase. So if you are renting and need to be out by a certain date, stay away from short sale homes and stay with foreclosed or traditional sales.
Short sale homes and bank owned homes are almost always sold 'as is' and they will rarely make repairs as part of the sale.
No matter what kind of home you buy, you will have to pay for the inspection. That way you own the information uncovered in the inspection.
- Dan, "the_country_hick"
- Contributions:4694
There is a new wrinkle in the mix now. Many banks are looking at a serious foreclosure problem. They may have illegally done some foreclosures. As a result some title companies are now refusing to issue title insurance on foreclosures.
That means make sure that you can get title insurance before you pay anything for a house.
A short sale would be better this way. In a short sale the mortgage signer has agreed in writing to give up all rights to the house. They can not come back and complain later. But if instead a foreclosure was done then years later the mortgage signer could just say that was done illegally and I want that house back.
That means make sure that you can get title insurance before you pay anything for a house.
A short sale would be better this way. In a short sale the mortgage signer has agreed in writing to give up all rights to the house. They can not come back and complain later. But if instead a foreclosure was done then years later the mortgage signer could just say that was done illegally and I want that house back.
- Frank Festa, "Frank J Festa"
- Contributions:1188
Yasmeen1, will you live in this home? Also, will it meet your needs for the next 10 years? Regards,
- Erika Phelan- Buyers Agent, "Orlando Buyers Agent"
- Contributions:103
C/O is certificate of occupancy....which means that the city needs to give final approval...sounds like this house may not be totally ready to occupy.
Erika in Orlando
Erika in Orlando
- Richard Schulman, "RichardSchulman"
- Contributions:2108
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- Nicholas Tukmanian, "NickTukmanian"
- Contributions:42
Michael has a great description of the benefits of bank-owned properties. They are properties that did not sell at any auction for one reason or another, and now are available for sale directly from the bank.
Although the delay on short sales could be significant, I think they favor the buyer more. Short sales give you an opportunity to work with the owners of the home as well as the bank. You aim to get a bargain, while the homeowners are motivated to sell it to you.
Many times bank-owned properties are in very bad condition, because the previous homeowners lost hope and took to damaging the house. Or it could be the homeowners didn't do the necessary maintenance for the house in years.
Also, with bank-owned properties, the bank has significant advantages. Desposits are usually non-refundable, whether or not you can obtain financing. They also tend to have more than one offer, so the price could go up during the negotiating.
Your post states that C/O, and other costs are your responsibility. This is a classic example of a bank-owned property, and all the costs are usually taken care of by the buyer.
I hope this helps.
Although the delay on short sales could be significant, I think they favor the buyer more. Short sales give you an opportunity to work with the owners of the home as well as the bank. You aim to get a bargain, while the homeowners are motivated to sell it to you.
Many times bank-owned properties are in very bad condition, because the previous homeowners lost hope and took to damaging the house. Or it could be the homeowners didn't do the necessary maintenance for the house in years.
Also, with bank-owned properties, the bank has significant advantages. Desposits are usually non-refundable, whether or not you can obtain financing. They also tend to have more than one offer, so the price could go up during the negotiating.
Your post states that C/O, and other costs are your responsibility. This is a classic example of a bank-owned property, and all the costs are usually taken care of by the buyer.
I hope this helps.
- Linda Strasberg, "L Strasberg"
- Contributions:2315
the length of time to close
- Stephanie McCarty, "snellvilleagent"
- Contributions:521
you, as the buyer, should not be responsible for getting the county to issue a certificate of occupancy on the property - that is the builder or seller's responsibility, even if it is a bank.
Difference between short sale and foreclosure: foreclosures are usually going well for buyers these days; short sales, major irritation and too many third parties and things that have nothing to do with you or your offer that can sabotage your purchase.
Good luck.
Difference between short sale and foreclosure: foreclosures are usually going well for buyers these days; short sales, major irritation and too many third parties and things that have nothing to do with you or your offer that can sabotage your purchase.
Good luck.
- James Berman, "TheNJRealtorGuy"
- Contributions:198
These questions are good ones but this why you should hire a Realtor, because buying a home is harder then you think
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Bank owned and Short Sale are different animals, the bank owned has probably been vacanyt for a while and could be in disrepair. A short sale is a property that hte homeowner is looking to sell short of waht thye owe. These properties may be in better condition then and REO property.
If they are telling you that you have to get the C/O certificate of occupancy which is what the twonship deems necessary for the home to be habitable. this varies form town to town.
If they are telling you that you have to get the C/O certificate of occupancy which is what the twonship deems necessary for the home to be habitable. this varies form town to town.
- Pasadenan
- Contributions:21453
In my area, all homes that are sold have to get a new certificate of occupancy before a new owner (or their tenant..) can move in. This is about the only time the city has to inspect the property for changes that have occured illegally and for code change issues that are safety issues (such as ground fault protection on receptacles near sinks). Many illegal garage conversions must be torn out, or in some cases alternative covered parking provided. Illegal back-house kitchens must be removed, but usually that just means removed the gas connection for the stove and the hood for the stove as there is nothing in the code that states one can't have a wet-bar in a family room or guest room that is a detached structure. But also lot coverage, floor area ratio, setbacks, building separation, and maximum size of auxiliary structures is looked at.
- Tyler Rygmyr, "Tyler Rygmyr"
- Contributions:205
Short sale- the home owner still legally owns the home. Bank owned- has already been through the foreclosure process and the bank will typically sell it in a normal sale cycle process (approx 30 days).
- Travis Waller, "TravisWallerCRS"
- Contributions:90
Bank owned, more specifically an REO property, you are purchasing the property directly from the bank.
A short sale is where the bank will allow a seller to sale their home and give them a forgveness on the mortgage amount that's due to the bank.
Short sale properties are usually in better condition than REO properties. REO properties, the buyer is responsible for the CO's(Certificate of Occupancy) where in a short sale, its usually the responsibility of the seller.
If you work with a really good Realtor, you will find a deeper discount in an REO property than a short sale and close in a more efficient timeframe. REO's usually want a closing in 30 days.
A short sale is where the bank will allow a seller to sale their home and give them a forgveness on the mortgage amount that's due to the bank.
Short sale properties are usually in better condition than REO properties. REO properties, the buyer is responsible for the CO's(Certificate of Occupancy) where in a short sale, its usually the responsibility of the seller.
If you work with a really good Realtor, you will find a deeper discount in an REO property than a short sale and close in a more efficient timeframe. REO's usually want a closing in 30 days.
Difference bet. bank owned and short sell
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