Anytime an Elgin investor asks me about the market and short sales, I always try to mention REO's. Why? Well, because short sales take forever, they can be messy, the offer can get lost in the shuffle and another offer can come along and trump yours in the middle of it all. Nothing worse than waiting 11 weeks for an answer only to get a NO with a higher offer on the table ousting my patient buyers. But the REO's, now that is a sweet spot. Of course, only for the strong stomachs and serious investor, because if you want a deal to be a steal, the property is going to have problems. Don't they all?? But that being said, REO's always come with a clean title and no liens attached. Nothing is lurking in the dark after you close and gain title. Plus you already know the BPO is done, and is usually listed below market value, so instant value is created for a buyer. With a short sale, maybe a lien will pop up later on or other title issues. I've had far fewer problems getting deals done with banks on REO's than on short sales. REO's are usually more aggressively priced and more willing to counteroffer than any short sale.
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