Foreclosures and Short Sales
Speaking of getting a deal…
Lots of people think that going after foreclosures is a good way of getting a good deal. It can be. But it can also be a risky purchase and tough to even buy one.
Going after a foreclosure before it hits the open market (at an auction or sheriff sale) requires that you take on all risk. Oftentimes you can’t even see inside the home before you make an offer. Plus, you have a very short period of time to come up with proceeds if you successfully win the bid.
The better way to go after foreclosures is to focus on those that the bank (or other lender) bought back and put on the open market. We can certainly consider those. At least we’ll be able to get inside and see the home. However, they will likely not do any repairs or credits for anything wrong with the home.
This applies to “short sales” as well. These can also be a way of getting a good deal, but you will likely have to accept the property as-is. However, an offer on a short sale can also take quite some time to be approved, if at all. So you need to be patient if you decide to go after one.
With all of that said, just because something is a foreclosure or a short sale doesn’t mean it’s necessarily a “good deal”. It depends on how much you can get it for and how much work and risk you have to take on.
So if you’re interested in a “distressed” property (the industry term for foreclosures and short sales), we can certainly throw them into the mix. Just make sure you approach it with eyes wide open and know what you’re getting into...and only as long as the deal is good enough to make it worth your time, effort, and financial risk.