Foreclosures versus Short Sales

Alot of buyers today who are looking to purchase a home almost always say I am looking for a good deal, a foreclosure. I then further ask them why do you think that a foreclosure is the only good deal out there? They typically say, well I want to buy a home that is undervalued and live there for a while and build equity. I always explain to the buyers that first with foreclosures Sellers Disclosures are not required which means that the Bank has not lived in the property and the property is offered as a as is" condition. This may not mean anything at the time and it might very well not ever be a problem but when things go wrong there is no one to point the finger at. That is the first point the second point is that banks are not always as negotiable as someone needing to sell for whatever reason or a corporate owned home where they can be extremely negotiable. Foreclosures alot of times are not a turn key property in many cases they have not been taken care of and sometimes the property has been raided of fixtures, cooper pluming etc..... A short sale is probably a better option since the homeowner still owns the property and in most cases are still living there and they have reached an agreement with the bank that they will not pay off the full loan amount. This occurs usually becasue they have no equity in the home and the home is not worth on the "Market" what they owe the bank. Usually banks are cooperative because they would rather see the property sell then go into foreclosure. Of course the sellers have to be in good standing with the bank and in good communications. Hope this helps someone understand foreclosures better.



Ann Byer

248-787-7895

www.annbyerhomes.com

sold@annbyerhomes.com