Short Sales, Foreclosures, REO's...

Here is the skinny on these:

Short Sales.  A Short Sale means that the bank is willing to take "short" the amount of money the owner actually owes them on the remainder of the loan amount.  There could be two loans (from the days of the 80/20.  80% first loan, 20% second loan on the full amount of the price of the home.  The 20% is the "second.").  If there is one loan, it is easier.  If two, they have to negotiate with the holder of the second loan, which can be a hard wait.  But now banks are starting to use a new system called "Equator," which is making things much easier.  We just got a Short Sale closed in a couple of months. Usually these are a dreadful pain, but with this new system, it has become better.  

Foreclosures.  Hm.  Hard.  Probably the hardest. The home has gone beyond a short sale and is in the process of being taken back by the bank through proceedings.  If an offer is received, the listing agent will request a stop on the proceedings to consider the offer. The bank may or may not stop proceedings.  

And REO is "Real Estate Owned" by the bank. Banks don't want real estate, they want money, so they put homes on the market to move them. Prices used to be low for bank owned homes, but that has changed. Often, they are priced above market value! After the first offer, or during it, they will adjust the price closer to the market.

The property is usually a little rougher, though, but it is a case by case basis, AND they are getting pretty good about putting in new carpet and painting everything, so, worth looking at, for sure.  You have to know what you are getting and have an inspection, and tough some may believe a bank will not pay for repairs, there are ways to to write a contract so that it will. It does not have to be "As Is".  Banks respond to an offer within about three days, usually. 

If you are interested in seeing some homes on the market, just give us a call or write and we can set up an appointment for you!  

Steve and Linda Slaughter
Your Idaho Double Agents
Coldwell Banker Tomlinson Group-Capitol Office
(208) 921-5143 (c)
(208) 921-5144 (c)
(208) 343-3393 (o)
slslaughter@coldwellbankertg.com