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Buyers ResourcesWhat Are Short Sales & REO'sKeeping you informed
SHORT SALES
A short sale is when a homeowner is forced to attempt to sell their home for less than what they owe on their mortgage. In other words, when they go to pay off the mortgage, they’ll be short.
They must get approval from their lender to do this.
BUYER CONSIDERATIONS
1. Pricing is ambiguous. Often the listing price is a “fantasy price” designed to attract offers but would never be approved by the lender.
2. Response time is unpredictable. It can take months.
3. The listing agent may be inexperienced causing even more delays.
4. The lender (bank) may never respond.
5. The lender (bank) may respond with a counter offer well above the original asking price set by the listing agent.
6. The property may end up going to Trustee Sale.
7. Delays can cause the buyer’s locked interest rate to expire.
8. Less than 10% of short sales are going through and ending in an actual sale of the property.
REO – BANK OWNED PROPERTIES
REO stands for “Real Estate Owned” by the bank.
1. The bank has already foreclosed on the home. The
borrower is gone and the house is vacant.
2. The bank hires a realtor to sell the house.
3. They list price is usually very attractive, well below market value to attract a quick sale.
4. Because it is offered below market value, the bank usually stands firm on their asking price, rejecting “low-ball” offers.
5. Often times bank owned properties are in poor condition. Some are trashed by a resentful former homeowner prior to leaving.
6. The ones in good condition sell quickly!
Featured Property |
Real Estate In Palm Springs, Palm Desert, Rancho Mirage, Indian Wells, La Quinta and Indio, California
Please contact us directly for information on great buys on bank owned homes and short sales.
(760) 861-0625
HELPING YOU FIND YOUR WAY HOME
Brought to you by
Dave Watkowski, S.R.E.S. / A.B.R.
Senior Real Estate Specialist / Accredited Buyer Representative
Keller Williams Realty - La Quinta Market Center
47-170 Washington Street, La Quinta, CA 92253
(760) 861-0625
