3 Reasons to Consider Buying a Distressed Property

Aside from increasing your housing options, considering distressed properties additional benefits as well. In areas where affordability is low and choices are limited, buyers – first timers or not – may be surprised at the advantages of considering distressed homes.

Distressed homes that are for sale not because the owner wants to sell, but because of pre-foreclosure, foreclosure, or repossession. Foreclosed homes are usually offered up through an auction in which the highest bidder gets the property. If the auction is not successful, then the lending party (usually a bank) will have to assume ownership of the property. This is known as a bank or real estate-owned property. So what are the advantages of buying these types of properties?

1. Lower/More Affordable Prices
Due to the nature of distressed properties, it is possible to get a house below market value. This is because homeowners (or banks) are usually in a position where they really want to sell and sell fast.

2. Financial Gain
Distressed properties create opportunities for buyers who want to make a profit down the road. Buying a home at a lower price and then putting in the work to improve it will certainly increase your return on investment when it comes time to resell.

3. Fewer Delays in Approval
When building new properties, you are often faced with construction delays. Some examples: when the approval on your construction plans does not go in your favor, when your developer was in charge of getting the permit but didn’t do it in time, or when your contractor made some error that resulted in the poorly built property. And the worst part is that they can all occur with the same property. While closing on a distressed property may take a little longer than a traditional sale, you won’t face constant setbacks you can sometimes encounter with new construction.

If you’re considering a distressed property, contact Metrowest. We specialize in these types of sales and would be happy to teach you more about the process and show you what Denver has to offer!

 

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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