In today's real estate world there are many many foreclosures, short sales and what is called REO listings, which means Real Estate Owned and those are generally owned by Banks. Can you get a good deal on a Foreclosure? Yes, No, Maybe so. If that sounds waffleing to you it is because no two of these sales are alike. First let's discuss some differences. HUD HOMES, these are homes that are owned by Fannie Mae (Federal Housing Adminstration Loans) these are priced at market value by an FHA appraiser before the are put on the market. Many times the HUD Home will be a good buy and many times the repairs needed make them not a good buy. ALWAYS have an HUD Home Inspected before final purchase. While HUD will not fix missing appliances or fixtures if the Roof is awful sometimes they will negotiate on repairs or replacement. SOMETIMES. HUD HOMES are bid on by buyers or Investors and the Buyer with the most "net" money to HUD normally wins the BID, if both an Individual buyer and an Investor bid the same price the Individual Buyer has preference. It is not by timeline for winning bids. Most bids are due on a Sunday Night at 11:59PM. It does not matter if your bid is received Thursday, or Saturday or Sunday, just be sure it is received before Midnight Sunday. HUD homes must be purchased through a licensed Realtor who has been accepted into the HUD system. REO listings. The REO means, Real Estate Owned, generally by a Bank. Can you get a good buy on these? Often, yes. Banks do not want to carry vacant homes on their books. A vacant home is a target for vandalism and theft. A vacant home can be an eyesore on the community. Bank Owned foreclosures are best handled by a Realtor®, the process can be arduous and requires patience from a buyer. Sometimes Banks will negotiate on limited repairs. Short sales, deemed short sales because a seller/homeowner is selling the house for less than the owed mortgage and the bank must agree to the price and terms. Often a person of patience can save money on a short sale but the sales are slow to happen so expect delays. While a seller of the home may still live in the home while it is being held as a short sale these homes are often in the best condition. They have not been vandalised or destroyed. If you need assistance with a Foreclosure please call me and I can help you. I am an experienced HUD homes agent and get you through the process in a timely manner. Mike Francis, Realtor 512-659-6658 |