A client asked me once what do you prefer -working a short-sale property or a Foreclosure? Well the answer for me was simple. I prefer a Foreclosure, why?? Well mainly because the entire process will take a lot longer on a short-sale property regardless of what anybody tells you, if your client is not ready to wait 2-3 or even 4 months there is a possibility the client will get tired and walk out of the deal.
Short-sale of a property occures when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. Ideally the owner will go to the bank even before listing the property with a Realtor and advise the bank of what his proposed sale price for the house will be and the bank will agree to allow him to start the process. Next a client that is interested in the property makes an offer, usually for a lower price than the listing price, the owner accepts the offer and then presents the offer to the bank...now begins the waiting process. The bank then has a period of time to review documents and either accept the offer or counter on the offer or reject the offer and it can happen in 1 week or 4 moths.
In a Foreclosure the bank already owns the property and sets a selling price. If a buyer comes with an offer then the bank will consider the offer and either counter bank or request highest and best offer if there are multiple offers presented. Usually if it's a really good deal, the bank will wait to get the best offer but the process of getting acceptance or refusal will not take quite as long.
It's important when looking to buy a foreclosure you work with someone that is familiar with the process this way you will be well informed with all the aspects of it.
Nayla Benitez
Paz Global Inc.
786-853-2333
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