Short Sales vs Foreclosure

Short Sales vs Foreclosure and Bank Possessed Homes

The real estate market has been saturated with distressed properties for several years, thats why knowledge of short sales vs foreclosure is extremely important.  Of course there are a lot of perks for the purchaser.  It has never been truer than today.

As you may know, a short sale property is one in which the homeowner owes a lot more than the true market value of the property.  Homes have depreciated considerably since the economic collapse.

Short Sales vs Foreclosure | Time Frame

The time period it takes most mortgage companies and banks to approve a short sale request leaves a “bad taste” with purchasers, retailers, realtors and other people directly related to the short sale process. Previously, the time frame to complete short sales vs foreclosure usually required four to six weeks to approve a buyer’s offer on the home.

With a delay in the approval process many buyers as well as realtors have stepped back from making offers on these houses. This unconventional delay has triggered discomfort for that purchasers and retailers involved. This is why there has been a recent upswing in foreclosures over the past few years as well.

Short Sales vs Foreclosure | The Federal Government

Recently the federal government passed a new law giving the financial institution only ten days to approve a deal from the buyer on these short sales. It hasn’t happened yet, but you will find some encouraging signs as banks are making more of an attempt to stick to the new law. Short sales vs foreclosure demands are becoming approved in under 2 several weeks in some cases.  This is a good sign but still nowhere near the time it takes for a buyer to make his final decision.

A bank possessed house is pretty much the same as a foreclosure. Although this kind of home requires approval, it’s works directly with the bank since they already own the home.  These kinds of distressed properties usually get approval within a couple of days.

Short sales vs foreclosure and bank possessed homes time of acceptance is like day and night.  However, it’s putting more pressure on banks to expedite their approval process.

Short Sales vs Foreclosure | Housing Market

As more bank possessed houses become available on the market, the short sale home process gets more competitive.  One of the disadvantages of some bank possessed home or foreclosures is that they are experiencing multiple offers the moment they are available available on the market. This is much like the market between 2004-2005.  Most buyers don’t like competing against one another, however the good side is that the buyer knows inside a couple of days whether their offer will be accepted or not. If it’s not, they’ve lost very little time and may move forward.

With short sales vs foreclosure, if your buyer finds a short sale home that fits their needs, never hesitate to create a deal. The customer should continue looking at other homes in the meantime. When they look for a bank possessed home or foreclosures and haven’t yet received approval for the short sale, they ought to ask their realtor how they can possibly acquire a possessed home.  What do you think about short sales vs foreclosure?

Image attribution: http://blog.naver.com/PostView.nhn?blogId=lifeissu&logNo=140124560155&categoryNo=11&viewDate=&currentPage=1&listtype=0

If you enjoyed reading “Short Sales vs Foreclosure and Bank Possessed Homes” then read more right here at REIMaverick.