If your a home Buyer or Investor in today's market I believe it is a better deal for you to purchase a Short Sale property then a Foreclosed property.
The reason for this is simple; Communication and Title checks are complete on Short Sales. All though Short Sales have a bad rap on time delays and not being approved by the bank for the Shorts. In the past year we have never had delays or never been turned down to short a property. I guess it depends on the Listing Agents ability to control the file and follow through with mitgators. I know it helps us in Fort Worth Texas. Barbara Newton is an excellent negotiator when communicating with the banks.
In the past year I have come to this opinion because I have struggled to understand why the REO or HUD people constantly do not tell you what price will be accepted or even an answer. Also, I have had one recent customer tell me she lost her non-refundable earnest money, appraisal money and inspection money because the Country Wide found a Federal Tax Lien days prior to closing. They could not sell the property because of a Title not being Clear "OOPS". That would be false advertising or something against the Anti Trust Laws RIGHT. Now Country Home Mortgage will not speak to this Customer /Buyer at all. Then she called us.
Why would Country Wide Home Mortgage place a property for sale that could not be sold? Maybe because they have several departments running with no organization and plus their just a service company not a "BANK". I can go on about this corrupt company!
That is the risk you take with a Foreclosed property! If there is no communication between parties how the heck can anything be accomplished.
With a Short Sale we have to speck with the Lien holder (Banks) but the Listing Agent still has a commission to earn so we are more motivated to follow through and make a deal work! Our living is on the line. We can do several things to get a deal noticed by the BANK and make a lot of calls.
With a Foreclosed property, I understand that the REO or HUD agent listing the property makes little or nothing. So they must work 20-40 at a time to make it worth it. Is this where the weak link is. Plus the Banks, Investors of the Liens and Foreclosed Attorney's all have a hand in deciding on a price. Just imagine the time delay to get it through their offices. 30 days, 60 days....no try 18 months.....
An average Short Sales is complete within 4 months if handed correctly!
A Short Sales with Country Wide Home Mortgage takes 1 year! They lose paperwork, appraisals, and contracts. They even delete files.....after months of working a deal.
But, if you're considering a Short Sale property just make sure you have an experienced agent and can wait a few months. The deal is there just wait!