Foreclosures, Best of Bad Situation
Foreclosures, bank owned properties, real estate owned (by lenders, REO’s) are at the top of the list of hot topics in the real estate and lending industries. A perceived slowdown in the national real estate market; new higher risk mortgages, and concerns about increasing interest rates have brought lots of attention to a sector of the market that has gone unnoticed for the past few years.
Aside from the traditional reasons that people get into trouble, a new and very significant foreclosure concern is that home owners may become overextended by adjusting mortgages, sub-prime loans, and other “creative” financing options that have become available in recent years. There are solutions available to those in this situation; a realtor experienced in what is called a “Short Sale” can literally save the day, creating a good deal for the homeowner, the lender, and a buyer. Confronting the problem is more than half the battle.
In a forclosure situation, a realtor experienced in foreclosures, and the multi-tiered negotiations required to resolve them are the homeowners best bet. Just as you would employ an attorney or CPA, you hire a realtor to confidently and confidentially take charge of the situation, negotiate resolution (usually in the form of a sale), and hopefully put some of your investment back into your pocket. The key to all of this is the bottom line$; Lenders know what is in their best interest, and their best interests are not met thru foreclosure. The time to resolve the problem for the homeowner is sooner rather than later. The longer the party in default waits before taking action, the less likely it is that the situation will be resolved before the foreclosure. (You should also consult with an attorney; your realtor will be able to refer you to one who specializes in real estate)
For homebuyers and investors, the time to take action is also sooner rather than later. Information is available thru realtors, as well as the internet, regarding property owners in default. The internet information/subscription services are useful, but the data provided is often dated and incomplete. If you are looking to buy foreclosure properties, by all means check them out on the web, and then get your realtor involved. Lenders would prefer to work with a professional third party, and they expect the third party realtor to be compensated for his or her efforts. A win-win for the all.
If you are interested in buying foreclosure properties, or if you need to sell your home, contact your real estate agent….we have the answers.