Short Sale, Bank Owned or Traditional? What to buy? Buying a home in Fresno, CA can be tricky. I give the buyers I meet with on our first visit this information so it will make it a little clearer on what they are looking for.
Buying a Home
Short Sale
A short sale is when the seller owes more on the loan(s) that secure the home than what is considered fair market value. The contract is negotiated between buyer and seller then sent to the lender(s) for third party approval of a discounted payoff.
Pros: - Traditional disclosures regarding the property will be made by the seller
Cons: - *There is no mandated time limit that a bank has to approve or deny a discounted payoff. Time frames can be 2 weeks to several months. Once bank approval is received, the time given to close the transaction may be limited. *Property usually sold in "As Is Condition"
REO (Foreclosure/Bank Owned)
A REO (Real Estate Owned) property is owned solely by the foreclosing lender. Price is already determined once property is on market.
Pros: - Seller responses to offers are usually within 3 to 5 business days
Cons: - *Not all traditional disclosures regarding the property are made by the seller. *Property usually sold in "As Is Condition"
Escrow Time Lines (once offer is fully executed)
Cash Offers - Escrow close time 10 to 15 days
Conventional Offers - Escrow close time 21 to 30 days
FHA Offers - Escrow close time 30 to 45 days
FHA 203K - Escrow close time 45- 60 days
Let me know if I can help you buy a home in Fresno, CA
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