Banked owned
This is my biggest business these days. In fact, if agents are not getting in this part of the market, they are missing the wave. If you are wanting to buy, look for properties that fall under this category. The difference between a bank owned property and a short sale is in the names.
A short sale is a property that is still owned by the individual borrower. The bank in this case owns the mortgage and not the house. The bank has to agree to allow the short sale and then has to agree to the price that has been offered. It is a very cumbersome process. I am sure that there are sales being made that go smoothly but, from what I hear, that is the exception.
A bank owned proerty is just that. The bank owns it and thus is directly involved in the sale and the price and the negotiations. It is a very efficient process and my experience has been that the bank responds to an offer very quickly. If fact, more quickly than an individual seller.
Another thing that makes this type of property attractive is that banks do not want to own properties. They will look at almost any offer and they are allowing agents to price the properties competitively. In fact, when a bank requests a price opinion, I am giving a price that I think will attract buyers in the current market. This is very hard to do with individuals these days. People want to price their home in accordance with prices from 2005 or 2006. That is no longer realistic.
Bottom line is that if you see two properties you like and one is a short sale and the other is bank owned...go for the bank owned one!
A short sale is a property that is still owned by the individual borrower. The bank in this case owns the mortgage and not the house. The bank has to agree to allow the short sale and then has to agree to the price that has been offered. It is a very cumbersome process. I am sure that there are sales being made that go smoothly but, from what I hear, that is the exception.
A bank owned proerty is just that. The bank owns it and thus is directly involved in the sale and the price and the negotiations. It is a very efficient process and my experience has been that the bank responds to an offer very quickly. If fact, more quickly than an individual seller.
Another thing that makes this type of property attractive is that banks do not want to own properties. They will look at almost any offer and they are allowing agents to price the properties competitively. In fact, when a bank requests a price opinion, I am giving a price that I think will attract buyers in the current market. This is very hard to do with individuals these days. People want to price their home in accordance with prices from 2005 or 2006. That is no longer realistic.
Bottom line is that if you see two properties you like and one is a short sale and the other is bank owned...go for the bank owned one!
posted by Terry at 3:31 PM
1 Comments:
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