Some of the best deals on the market today are Foreclosures and Bank-owned (or REO) properties. All sound confusing? Here's a quick and simplified explanation.
REO or Bank-owned properties - This means the property has already been foreclosed on by the lender.The lender now owns it and have listed it with a Realtor and it is now on the market. It is possible that when these properties come on the market and are really priced competetively, sometimes multiple offers are made. You need an experienced Realtor to help you make your offer and guide you through the process.
THE KEY TO BUYING THE REALLY GOOD DEALS IS GET TO THEM FIRST! Fill out our online request to be placed on the auto-notification service and you will be emailed any new bank-owned and foreclosed properties as soon as they are entered into the multiple listing service. We can access Cedaredge, Eckert, Delta, Hotchkiss, Paonia, all of Delta County, Montrose County, most anywhere on the Western Slope.
No one will call you unless you ask us to call. We don't like being bugged and we put you in the driver seat....and - we NEVER share your contact information with ANYONE.
Short Sell (or Short Sale)- This property has a current market value that is LESS than what the owner owes on the property. The property is still owned (and usually being lived in) by the owner. A buyer writes a contract making an offer for the current value of the property and it is presented to the owner who then presents it to the mortgage holder. The mortgage holder would then have to approve and agree to allow the owner to sell the property for a lesser amount than is owed to the mortgage holder.
Example: Owner owes $200,000, property is currently valued at $175,000. Buyer offers $170,000. Mortgage holder would have to agree to accept the lesser amount for the purchase to take place.
And why would a mortgage holder agree to this? Well, in today's real estate environment, the mortgage holders know that if the owner lets the property go into foreclosure they risk loosing a substantial amount of money, the property can be damaged/deteriorated, legal fees and extended period of time, etc. before they can re-sell it.
The challenging part of a short sale is that lenders routinely take weeks and sometimes months to make a decision as to whether they will accept your offer. Much patience is needed by the buyer to pursue purchasing a short sale, but if successful, can be very profitable.
