Buying Pre-Foreclosures and Short-Sales
When a homeowner encounters life's difficulties where they cannot keep up with their mortgage payments, often they are smart enough to get help right away. They seek out Realtors who are great in negotiating short sales with banks and get their property listed to sell before the actual foreclosure takes place. If they succeed at this, they will benefit by keeping a foreclosure off their credit report. But the sad part is that usually these people walk away with very little or nothing.
So what does that mean to us, the buyers? Well, there are a couple things that are good to know. First is that all offers are subject to bank approval. That means even if the owner accepts the offer, the bank still has to review it and give their approval before it will go through. If there are multiple liens and multiple mortgage companies involved, the offer process can be quite drawn out and frustrating. One lender could approve the offer and another adds stipulations to it.
But if you're ready to ride the roller coaster, there are some deals to be had. We always tell our clients that you can save money with these, but you'll pay extra in frustration, lack of communication and time.
Usually in short sales, the owner is still living in the property, and in Minnesota that is a good thing! Why? Well, vacant homes have all kinds of liabilities and issues.
They may:
- Have vandals break in, stealing copper plumbing and other valuable materials
- Have squatters break in, especially in winter when they are often likely to starting fires to keep warm resulting in smoke and fire damage
- Have frozen/burst pipes and water heater if not winterized properly
- Have mold from leaky roofs or burst pipes that were not dealt with properly
- Have electricity and other utilities turned off
Either way our team has a number of short-sale experts. If you're selling, you'll be introduced to them. If you're buying you'll have plenty to choose from!
Call or email us if you have any questions about Pre-Foreclosures and Short-Sales - we are happy to help!
Direct Line: 612-644-5380
Email: homes@greatminnesotarealestate.com
