Should you buy a short sale?

If you’re considering purchasing a distressed property – either for your own residence or as an investment, there are a variety of options to choose from. Short sales, foreclosure properties, and bank-owned (REO) properties all have a unique set of advantages and disadvantages.

Here we’ll check out some of the pros of going the short sale route. The name can be a bit deceptive – short sales aren’t necessarily fast – but these types of properties can be ideal for potential homeowners and investors alike.

  1. Lower Price
    Short sale homes can often be a deal, but be realistic and understand that each one isn’t going to necessarily be a steal. In other words, you’re not going to offer $150,000 on a home that’s appraised for twice that.
  2. Home Condition
    A house that has gone through a short sale, versus one that has been foreclosed, is usually in better shape for the buyer since it hasn’t been abandoned for months, and that no seller is likely to have exited, damaging the home out of anger. So while you may not get a bargain basement price on a short sale that you might on a foreclosure, the home likely won’t look like in belongs in a basement bin either.
  3. Better Financing Terms
    Even though a short sale requires the bank to agree to sell the home for less than the value of the current loan, short sales often represent the most cost-effective option for the bank. Rather than continue to receive no money on the property, the bank is often eager to sell the home at a short sale, which can help the lender recoup at least some of the loan costs.

Are you ready to start checking out short sale properties in the Denver-metro area? Give us a shout – Metrowest specializes in these types of sales and we’d 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.

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