Should I Buy a Distressed Property?

The term “distressed property” may conjure up images of unsightly houses that appear dilapidated and beyond repair. However, the term really isn’t as scary as it may seem. Distressed housing simply means a home that’s fallen into a short sale situation, foreclosure or is an REO (bank owned) property.

While it’s true that sometimes these properties need extensive work, that’s not always the case and sometimes you can find a fantastic deal – whether you’re purchasing a home for primary residence or to fix, flip and rent out.

According to a national survey, buyers who purchase distressed homes save approximately 27 percent when buying distressed properties. If you select a home that doesn’t require extensive repairs and upgrades, you’ll likely have a significant amount left from your budget to tackle renovations.

Many people are also concerned about how to finance a distressed property; however, financing this type of home isn’t really all that different than traditional properties. Also, there are special loans and incentives specifically for purchasing a distressed property.

FHA 203k loans are one of the most popular methods of purchasing a distressed property. This type of loan allows you to borrow money, using only one loan, for both home improvement and a home purchase. 203k loans are guaranteed by the FHA, which means lenders take less risk when offering this loan. As a result, it’s easier to get approved (especially with a lower interest rate).

Ready to start checking out distressed properties in the Denver metro area? Contact Metrowest today – we specialize in these types of sales and would love to show you around!

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.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

No comments yet.

Leave a Reply