3 Tips for Buying a Distressed Property

If you’re on the hunt for a house in Denver, chances are you’ve run across the term “distressed property”.  A distressed property is any property whose owner is in default on the mortgage, so distressed properties can actually be short sales, bank-owned homes, and foreclosures.

While different than traditional sales, these types of houses can actually be a great deal for buyers in areas with low inventory, or for first-time buyers. Here we’ll cover three tips for any buyer interested in a distressed property:

  1. Work with a pro
    Distressed property sales are unique. Buying these types of properties isn’t necessarily harder, but they aren’t the same as traditional sales, which is why it’s crucial to find an agent who specializes in these kinds of transactions so they can help you navigate the waters.
  2. Never skip the inspection
    Any time you purchase a home, you need to have a thorough home inspection. That inspection becomes even more important when you’re considering a distressed property because these types are nearly always “as-is”. An inspection up front can save you thousands of dollars in repairs down the road. At the time of inspection, you haven’t committed to anything – if your inspector finds costly and time-consuming repairs that need to be made, you can simply walk away.
  3. Show the bank you’re serious
    One of the things to keep in mind when trying to buy a distressed property is that the bankers who need to approve your offer will only to consider serious ones. So make sure you’re preapproved for a mortgage before you make an offer on a distressed house.

Think you’re ready to start checking out distressed housing in the Denver metro area? Contact Metrowest today – we specialize in distressed property sales and would love to help you start the process!

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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