Protect Yourself, Your Family and Your Credit. Foreclosure CAN be avoided.
How to Navigate This Distressed Homes Market
Distressed properties, in a time when the economy is in a ‘downturn’, account for up to half of the homes for sale, in a great percentage of the real estate markets.The financial value of distressed properties has always been considered a loss in their true market value for many reasons.
What Is a "Distressed Home"?
These homes have been through the pre-foreclosure process and put on the "short sale listing." The homeowner cannot afford to maintain the mortgage, and rather than foreclosing, the lender agrees to the sale of the property at a loss, or for what for the balance of the loan as it stands. The short sale is a lengthy process and sensitive therefore it requires more attention than a tradition sale.
Time IS of Essence
With distressed or foreclosed properties, time is of the essence. If you don’t remember this sentence it may cost you plenty. If you are not prepared it could cost you $25 to $200 per day, because the date of closing is the date specified by the agency, and cannot close after this without penalties. The best thing to do is to get your financing approved, ready and waiting. This is a very important action for you to take because it could take a couple weeks to qualify a loan and get approve. By doing this first you can avoid those extra charges, that you might not have been aware of. When you find the property you desire, your real estate agent can submit the offer right away.
Use the Resources Available to You and Avoid Costly Mistakes
The bargain home often is a bargain because it needs many improvements and/or repairs. The former owners may have been disgusted with the whole thing after losing it and gave up the intentions of leaving it in good repair. This is where it will behoove you to call an inspection service and meet him there to do a walk-thru to find the trouble areas. By doing this you will have a better knowledge of everything that might need more attention later.