How to buy short sales and foreclosures Foreclosure buying tips, current listings and off-market Main Line foreclosures
How do short sales work?
In the link on this page you can quickly access all short sale and foreclosure listings in the area as well as tips for both buyers and sellers.
For sellers in default
What is a short sale?
With a short sale, you are negotiating first with the home owner and secondly with their lien holder. The property is usually in pre-foreclosure but not always. If the current market value of the home is less than the balance due on the mortgage, it is being sold “short” of the mortgage payoff and the home owner is seeking a solution for that debt. The win for the seller is debt forgiveness from the lien holder and successful resolution of the upside-down mortgage balance. The win for the lien holder is resolving bad debt, and avoiding the additional costs of taking ownership through the courts and then selling as a foreclosure. The win for the buyer is finding an under-market value and having the home owner involved throughout (sellers disclosures, maintenance of the property, etc).
What do you need to know about a short sale?
Short sales are very different from buying a bank owned foreclosure (REO). There are critical things to know on the buyer side of a transaction in order to navigate successfully to settlement. To learn more, grab a cup of coffee and enjoy a class that Susanna taught recently to help buyer agents how to successfully represent their clients.
How do you buy a bank-owned foreclosure?
When a property is marketed online as a foreclosure, that means the lien holder (bank) has gone through the formal court proceedings to take back ownership, clear title and list it on the MLS for sale. The advantages as a buyer are that you are negotiating in a direct relationship with the bank as owner and can count on a fairly quick response, with a closing timeframe that you’re in control of. The down side is there are no disclosures, and the “as is” risk is higher than with a short sale where the owner is still involved.
Help for Homeowners
If you know anyone struggling with their mortgage, or confused about what to do when their COVID forbearance comes due, please share this site with them. Short sales help homeowners save their credit and successfully get out from an under-water property. It’s scary and confusing. I’ve successfully helped owners resolve what often are complicated distressed property situations since 2008.
Off-Market Main Line Foreclosures
Click here to download a current list of off-market Main Line foreclosures. If any are of interest, contact me for details.
For more insights and tips on the distressed property market, contact Susanna.