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How To Buy a Ho…

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How To Buy a Home For a Bargain

With the economic conditions today, there are many options available to buy a home at a great deal. Among the many options available are buying a home through a short sale, foreclosure, or REO.  However, which is the best method of buying a home for you?

Short Sale

A listed short sale amount is not guaranteed! A short sale is when a lender agrees to sell a home for less than the mortgage amount owed.  The lender is trying to get the best possible price and will not say how much they are willing to accept up front.  The only way to know how much the lender is willing to accept is when a previous buyer offers an amount to purchase the home, the lender was on the verge of issuing an approval of short sale letter and the buyer walked away, leaving the home on the market. In this instance, the selling Real Estate Agent is now aware of the short sale price the lender is willing to accept.

A short sale purchase is a possible bargain; however, it may take up to 6 months to purchase a short sale.  This is dependant on time it can take the mortgage lender to decide on whether they are willing to sale the home for less than the mortgage balance owed.

Foreclosure

A home is in foreclosure when the home owner has stopped making the mortgage payment and the lender has given and filed a notice of foreclosure.   Most lenders begin foreclosure procedures when the mortgage payments are two months past due. The home is then offered for sale at a public auction.   A homeowner may avoid Foreclosure by bringing the mortgage payments up to date before the home is offered for sale at a public auction.

Investors see a potential profit opportunity in purchasing foreclosures for the mortgage amount owed and being able to acquire the any of the existing equity for free.

REO

An REO is real estate owned by the lender and are homes already foreclosed on.

REO’s may generally be purchased lower than if purchased through a short sale because the mortgage lender has already taken a financial loss on the home.  They are now willing to sell the home less than the past loan amount and are willing to sell to the highest bidder.

Many consider this the best way to purchase a home because the owner is no longer in the picture and also because an REO may be purchased within 30 days or less.

 

Begin searching for you home today at http://MyFloridaHomesMLS.com/joslynmorales.  For more information visit my webpage at http://joslynmorales.mfr.mlxchange.com or you can find me on Twitter and Facebook.