Temecula Bank Owned Homes and Murrieta Bank Owned homes are abundant, there are many great buys on the market and understanding all of the circumstances leading a home from a short sale to a bank owned home, can make it easier to understand why they take so long to purchase.
The parties involved:
- Banks- Have their own Loss Mitigation department and each bank handles business a little bit differently. Timeliness of the process depends on how many employees departments the bank has to conduct the pricing, legal aspect and marketing of the home.
- Borrower/Owner - Must obtain a short sale package from their lender, and fill it out properly.
A short sale package is what the borrowers' bank uses to determine if they will accept less than the borrower owes in the first place. The Borrower/Owner has to substantiate that they cannot make the payments due to lack of income or some other situation or hardship.
If the borrower/owner has the short sale package approved, the bank will determine what they will accept for a short sale price. This is usually done by using a Broker Price Opinion and eventually an appraisal.
Bank Owned Homes - If the Short Sale is not approved by the bank then the home becomes a Bank Owned Property when the borrower/owner has run out of time to "cure" the debt.
- The foreclosure process has gone through all steps. Notice of Default and Trustee's Sale are over. Property's title is in the Banks Name. (usually taking 111 days or longer if a bankruptcy or lawsuit are filed).
- The Borrower now has a "Foreclosure" on their credit report.
- If the property does not sell at the Trustee's sale, (most do not), then the bank will re-list the property with another Real Estate agent and sell it as a Bank Owned Home.
If you are purchasing a Short Sale or a Bank Owned Home Patience is required:
Due to the quantity of short sales being submitted to the banks loss mitigation manager, on a daily basis, banking staff is over burdened.
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- The fact that the loan could have been sold/packaged in a bundle of loans and several investment banks may need to be contacted to approve the offer.
- There are articles all over the internet in books and television shows that explain this process. They all say the same thing: The short sale process can be profitable but slow.
Buyers who are patient can purchase Bank Owned Homes in Temecula and Murrieta for 40% lower than they were selling two years ago. This current real estate market with so many Short Sales and Bank Owned Homes is not like a regular real estate market when seller's had equity in their homes.
Putting demands on the bank or your Realtor to hurry up the process will not make it happen any faster. Call or e-mail us for more infomation or visit our website at www.soreal.biz.
We are experienced Real Estate Brokers offering excellent and individualized Customer Service. If you are looking for Temecula Bank Owned Homes or if you are thinking of living in the surrounding areas of Temecula, Murrieta, Wildomar, Menifee, Winchester, Fallbrook, Southwest Riverside County, or North San Diego County, please contact us for a private tour of the area.
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