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Buying Short Sale and Foreclosures Tips

By
Real Estate Broker/Owner with Weichert, Realtors® - SBA Group 9074493

S.B&A Realty Group, Inc. a Massachusetts and Rhode Island Real Estate Company specializing in Traditional, Short Sales and Bank Owned Properties, provide some tips for buying in today's Real Estate Market.

1. Work with an agent who has access to foreclosure information.
Many home buyers assume that all agents have access to foreclosure listings. It's important to ask.

2. Bank-owned properties generally close faster than short sales.
While short sales can be bargains, they also can take a lot longer. Some banks will negotiate in a timely manner on short sales, but most will prioritize properties they have already repossessed.

3. Offer a Reasonable Amount.
Don't assume that banks are firm on their price but don't send a low offer as that may be a waste of your and asset managers time. Asset managers responsible for liquidating bank-owned properties are often willing to consider a lower offer but they also have limits.

4. Ask the bank to pay your closing costs.
The worst that can happen is that they say no. Sometimes buyers are surprised to find that banks can be quite accommodating when they want to.

5. Get pre-approved from the same bank that served the REO loan.
When making an offer on a short sale or REO, it's often strategically helpful to be pre-approved by the same bank. During negotiations, this may tip the scales in your favor.

Good Luck!

Muhammad Mushtaq
Principal Broker and Realtor (MA & RI)
REO Default Certified Professional (RDCPro)
Loss Mitigation Certified Professional (LMCPro)

S.B & A Realty Group, Inc. 10 Purchase St, Suite 301 Fall River, MA 02720 Off:    (877) 616-0330 Ext. 601 Cell:  (508) 982-4824 www.sbarealty.com

Wayne Weaver
ERA Team VP Real Estate - Bemus Point, NY

Great info, love the idea of using the same bank for your mortgage.  They have to be thinking they will be a little better off and would likely be more flexible with you.  Thank you for the post

Jan 25, 2011 07:53 AM