Are foreclosures a good deal or are they just a head ache?
There was a time when the REO was a great deal but not anymore. Recently, I have been noticing in the Sacramento County area, that when searching properties in the MLS and comparing prices, the REO is no longer below market value in some cases they are even a little high. Today, the market has shifted and it seams that the short sale is fast becoming the new hot ticket in town.
Despite the Buyer theoretically have the opportunity to direct the escrow, if the Buyer wants it, they will still have to agree with the banks demands which is using their vendors such as Title and Escrow which we all know is a huge head ache.
So is it worth it? That is the question I pose to each Buyer who then gets to make an informed decision about what she or he is willing to accept. Fast Head Ache or Slow Migraine?
If the Buyer opts for the better deal and takes the longer route, they at least know the head ache can turn into a migraine at any point, but at least they made their own decision.
So why is this might you ask?? In my opinion, the Seller's are no longer attached to the outcome of the overall bottom line to the bank and there are plenty of agents who seam to not be invested in the neighborhood, and furthermore they are more than willing to start the process with a quick offer to the bank just to get the ball rolling. I might be wrong but that is what seams to be the trend these days.
If the promises of the bank like Wacovia and Wells are truly going to be 30 to 90 business days to an answer for approval, we are going to be seeing a real change to our statistics. It will be interesting to see how this next quarter will play out. In the mean time, I'll keep a lot of Advil on hand.