This townhome is being offered as a Short Sale in Tareyton Estates for $165,000. Similar homes in Tareyton Estates have been selling between $238,000 - $250,000 this year. So a great price and could be perfect for an FHA203k Rehab Loan.
If you'd like a private tour of this townhome give me call #215-499-7682.
What's the difference between buying a Short sale, Foreclosure and REO (Bank Owned Property)?
A Short Sale is where the seller is negotiating with the bank to accept less than the bank is owned. To give an example the seller purchased the home with a $200,000 loan a few years ago, and now due to their circumstances can no longer afford to make the payments. Over those few years the condo has dropped in value to $190,000. To sell the home will cost approximately 7% so the net would be $176,700. So, the seller is trying to negotiate with the bank to accept less than they are owed rather than pursuing foreclosure. The reason the banks are willing to accept these deals is because it saves them time and money having to repossess the home and then hire an agent to sell it all while no one is looking after the home and keeping it in good repair. There are some great deals out there like this, but they require more patience and flexibility than a straightforward transaction so they are not for everybody. Banks typically take 30 - 45 days to respond to your offer, and often times the home is being sold as-is so even though you are getting a good deal you may need more money in your reserves to fix things you usually would have asked the seller to do.
A Foreclosure is a home that is going to sheriff sale. There are some great foreclosure deals out there, but of course the greater the reward the greater the risk. First of all the homes are not available for tours so it is difficult to know the condition of the property before purchasing it. Since, the homes being auctioned at the sheriff sale have not been repossessed by the bank yet, often times the owners have not been evicted. You are actually at the hearing to determine what will happen with that property. About 75% or more of the time the foreclosure is stayed, or adjourned meaning it is put on hold and no decision is rendered, it is off the list, or it is purchased by the bank. The ones that do go up for auction are bid on right there and then. In Bucks County you must put up 10% of the bid price right then and there in certified check or cash and the remainder is due within 10 days, and there are no extensions. This means there is not enough time to get a mortgage on a foreclosure so you must be able to pay cash. other things to be aware of when purchasing a foreclosure is you are buying it with all liens attached. This means that there could be a second mortgage that you will acquire, or there could be mechanics liens against the home which you will be responsible for. So, it is important to run a title search on any home you are thinking about making a bid on. These typically run about $275.
A Bank Owned, or REO property is sold through our MLS and is a home that has already been foreclosed on and the owners have been evicted. Out of these three types of sales this is probably the safest. The reasons why are because it is available for showings so you can see what the condition is like, and because the bank usually signs off within a week of submitting your offer so you are not waiting for a month, or more like you would with a short sale.
The postings on this site are my own and do not necessarily represent Prudential Fox & Roach's positions, strategies, or opinions.
Information re: homes listed for sale & recently sold properties was obtained from Trend MLS and the properties contained in the list were listed and sold by various participating Brokers in the MLS. If your property is currently listed with a Real Estate Broker, please disregard this notice. It is not our intention to solicit the offerings of other Real Estate Brokers. We co-operate with them fully. An independently owned and operated member of Prudential.
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