Distressed High Rise or Loft Condos FOR SALE!
VERY few people are buying anything today that isn't a short sale or an REO property (I define this later). Why? Because everyone is looking for a great deal but the only great deals out there are in the hands of the banks. Anyone who purchased a property from 2005 to 2006 is "upside" down, meaning that they owe more money than the property is worth, so they are unable to sell the property at today's prices without "writing a check to the bank" or negotiating a short sale.
A short sale is a transaction where the current lender of a property agrees to take less than what is owed on that property. At the conclusion of the deal, the former owner/seller sells the property and makes nothing and the bank ends up with less that it originally loaned. The bank "writes off" the loss and the seller may get hit with the loss at tax time (remember that the seller was forgiven a debt which can be considered income). Short sale are complicated and often takes months to conclude because frankly the bank isn't crazy about losing tens or hundreds of thousands of dollars. Therefor the bank requires a lot of evidence before it will agree to the deal. Nonetheless, for the VERY patient buyer a short sale can be a very good deal.
An easier way to go can be REO or bank owned properties. In these cases the bank has already foreclosed on the previous owner and now holds title to the property. Just as importantly the bank has a very good understanding of what the REAL value of the property is. In most cases the bank just wants to sell the property and is not interested in waiting months for a buyer to come along. Instead banks typically price the properties to sell relatively quickly which can mean a great deal for the buyer. But with great prices comes a lot of competition so don't be surprised if other buyers beat you to the table and buy a property out from under you. Also, don't be surprised if the bank tries to play two different buyers against one another. After all, the bank is trying to limit it's losses. So in the case of REP properties not only the early bird but also the most prepared bird gets the worm.
If you are interested in buying a short sale or bank owned REO then use the links to the upper right to find some properties that catch your interest then give us a call. We not only know the scoop of what's going on at most of the buildings (yes there are some bad buildings out there) but we also know how to "package" you so that banks will like you more than other buyers giving you an edge over the "competition." In the case of short sales and bank owned REO high rise and loft condos it truly does pay to work with an expert. Call the WeKnowUrban guys at the number at the top of the page.
Phoenix Foreclosures
Scottsdale Foreclosures
Tempe Foreclosures
Have a question or want to share a short sale or REO property success story or nightmare? Lay it on us below. No you don't have to include a photo or even your name if you don't want to :-)
Comments
Will be looking foward to receive your response.
Thank you!
Anna
Simply Wonderful
We recently wrote "The Homeowners Guide to Avoiding Foreclosure" to educate homeowners about their options to avoid foreclosure.
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Thank\'s
JOHN MARSH
People who sell their home or condo via short sale will experience a hit to their FICO score of approximately 80 to 100 points. So, if the FICO score was 680 prior to the short sale it will be approximately 580 to 600. And those people should be able to borrow money to buy a home in approximately 2 years following the short sale and the lender should be much more flexible with FICO scores and down payment.
The possible downside of a short sale is that the lender might pursue a deficiency judgement against the short seller so that the person owes the lender the amount of money that the lender lost in the short sale. So you'll want to clarify with the lender up front as to whether or not it will pursue a deficiency judgement against you in the event you sell the property short.
Last week we put a deal together for a buyer with a steep discount. The listed price for the Tempe bank owned condo was $209,000. We negotiated a price of approximately $179,000. Not bad huh? Yesterday we got an offer on one of our bank owned listings priced at $199,900. The buyer offered $180,000. The bank counter offered at $197,000. Not much of a move.
There are tricks to getting a better price. They don't always work but they certainly improve your odds of getting a great deal. Call us to learn more.