Many of the homes for sale today - as many as half in some markets - fall under the category of "distressed properties."

These are homes that have either gone through foreclosure or are being marketed as "short sales." In a short sale, the homeowner can't afford to maintain the mortgage, but the lender - rather than foreclosing - agrees to the sale of the property for less than the balance of the loan.

These types of sales have different dynamics than traditional sales - with more paperwork, often a longer transaction process and, in some cases, more frustration. For these reasons, many buyers shy away from foreclosures or short sales.However, if you understand the potential pitfalls of purchasing a distressed property - and work with an agent who has a thorough knowledge of this market - you can get a great home at a great price.

Many agents have been specially trained in working with foreclosures or short sales through the Certified Distressed Property Expert class or a similar course. It is important to work with a CDPE that can guide you through the process and help you locate and purchase just the right home for you.

This is an outstanding time to buy a home - distressed property or not. With historically low interest rates, and a glut of homes on the market in most areas, there are bargains to be found. And the U.S. tax credit of up to $8,000 for first-time buyers - good for a home purchased before Dec. 1, 2009 - makes purchasing a home even more attractive.

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This post has been included in Maine Real Estate News

2 Comments on Buying Distressed Properties - Part 1

FEB
18
2010
606,504 Points 14 Featured Posts Outside Blog Called Shot Master

And in our area if it is a bank owned property in our county...that has been vacant for at least 3 months the borrower may be eligible for a silent second grant!!   what a deal!!
7:48am • #1
153,384 Points

Deborah - Do you have more information about that?  I am curious to know where else it is available.

 
8:52am • #2


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