What are the Advantages of Buying Distressed Properties?

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There are several types of distressed properties that potential buyers might include in their housing search options and each has its own distinct benefits. Here we’ll take a look at various types of distressed housing and the advantages that come along with them.

Pre-Foreclosure/Notice of Default (NOD)

  • Seller will be motivated for a fast sale, increasing the buyer’s bargaining power.
  • Buyer can do all standard inspections, including researching title during due diligence/contingency period.

Foreclosure Auction

  • The property will be sold for the outstanding mortgage balance owed to the foreclosing mortgage holder — this can be a low price for the property.
  • Cash payment requirements may reduce competition.

Bank or Real Estate Owned Property

  • The bank is motivated to get the property sold and will negotiate price, down payment, and closing costs, escrow length, etc.
  • Clear title. The buyer will not take on any liens, mortgage or back taxes of prior owners.
  • Inspections and mortgage financing are allowed within the normal due diligence/contingency period.
  • The house will be vacant.
  • REO sales typically close within a normal escrow period of time.

Distressed properties can be a great deal for buyers who know what to expect. That’s why it’s crucial to secure a real estate agent who’s well-versed in these types of transactions. Metrowest specializes in distressed property sales – give us a shout today and let’s 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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