Some words of wisdom… There are distinct differences in purchasing these two types of properties, but they represent the bulk of available homes in today’s market, so let’s look at each and you decide which is best for you.
First, Bank Owned Homes or Foreclosed Homes are usually vacant and have likely not been properly maintained for some time whereas many Short Sale or Pre-Foreclosure homes are occupied and you can more quickly determine if all the functional parts are working properly.
Secondly, due to the historically long time it has taken to get an approval or even a counter offer from the underlying lender(s) on a Short Sale or Pre-Foreclosure, many buyers (and agents) have avoided them and opted for the Bank Owned homes. No longer is the case for many Pre-Foreclosed homes. With changes in the HAFA and other gov’t programs over the past year, many times an offer on a Short Sale or Pre-Foreclosed home will be answered within 2-6 weeks. On Bank Owned or Foreclosed homes, buyers often have to make several offers, often “bidding up” the price and waiting for an answer on their offers without ever getting to escrow due to “multiple offers”.
What’s important thing to remember is that with either, trained professional help is advised. Many agents are still not full trained or experienced in Short Sale or Pre-foreclosure transactions, either as the buyer’s or the seller’s representative. There are many pitfalls to each type of transaction, so be sure you are properly represented!
I am a certified Pre-Foreclosure Specialist and have represented many sellers and buyers involved in Short Sales. We have also represented many buyers who have purchased Bank Owned Homes as well as many Bank Owned properties. If you are looking to purchase a home or investment or you are facing a hardship and don’t know which way to turn, contact me. There are many options available to homeowners in distress. I would be happy to discuss the situation with you and help you find the best alternative for you! “Our Mission Begins and Ends with YOU!” Edith Gingerich, Broker, Mission Ranch Realty, Riverside, CA.