Answers (6)
- Metro Indy Expert.
- Contributions:197
If time is on your side then wait until the bank owns the property. It will be a lot less stressful.
- Michael Albano, "MichaelAlbano"
- Contributions:8
Yes, when the bank has already foreclosed and now owns the property(REO) it is much easier to negotiate and much more likely that you will negotiate a good value. Equally import is that it is less likely that something will go wrong at the last minute for the bank to not allow the sale. However, there can be a very long time line between the bank "taking' the property and marketing the property assuming they market it at all..
- Stephanie McCarty, "gwinnettagent"
- Contributions:530
It's not like you will be able to turn around and do that right away. The foreclosure department is totally separate from the short sale or loss mitigation department. You could have a home foreclosed while you are trying to buy it on short sale - happens often. Once foreclosed they have a process and it could be months before the bank will make the property available for sale. One in my neighborhood sat empty and unlisted for over a year before it went on the market.
- Brenda Feria, "b.feria"
- Contributions:73
First my question would be, "why would a seller not accept a short sale?" In a short sale, the seller's credit will not be affected as negatively as with a foreclosure. A foreclosure will remain on the seller's credit for several years, whereas, in some cases the seller may qualify to purchase something else. It just depends on who you are representing - buyer or seller as to which way is best.
Brenda Feria
Brenda Feria
- Ben Strom, "Ben Strom"
- Contributions:18
John is right and if you wait until if has foreclosed, which could take months, you also run the risk of paying more if you do get it.
- John Squier, "John Squier"
- Contributions:252
My experience has shown me that it tends to be easier to work with REO (Real Estate Owned; Foreclosed) than trying to negotiate a short sale....usually less time and frustration. having said that, lenders in this area (MN) appear to be pricing properties at a point that is more effective at generating multiple offers so you just need to understand you risk and have a strategy.
If seller does not accept short sale offer,home goes 2 foreclosure,is it easier to buy from lender
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