Buying Distressed Properties
A “distressed” property can come in many different forms. Whether you are a seasoned real estate investor or just interested in purchasing Utah real estate at a discounted price, distressed properties can prove to be a savvy choice for you. There are dozens of ways to take advantage of Utah’s distressed real estate market and the Red Sign team can help you determine which types of distressed properties to purchase will be the most advantageous to you and your family.
What is a Short Sale?
In a short sale the bank (lender) agrees to accept less than the amount owed on the mortgage of a home. This benefits the bank by allowing it to avoid the foreclosure process on the home (which can be both expensive and time consuming) and it benefits the seller by allowing him/her to avoid the extensive negative credit ramifications of going through the foreclosure process.
How Does it Work
In a short sale the bank does not own the property but because the bank must approve the sale (because it is the lender, not the seller taking a loss on the property) it almost feels as though you are buying the home from the bank. Short sale transactions can be more time consuming and patience testing than foreclosure purchases.
First off you will need to find a short sale home that you are interested in. This shouldn’t be too difficult in today’s real estate market. Up to half of the homes in certain areas are distressed properties. We can help you by providing you a list of short sale listings in the area and we can visit them together.
Once we find the home that you are interested in purchasing we will work out an appropriate and strategic offer price on the property. Once the seller accepts our offer it will then need to be sent to the lender for approval. The offer is not official until the lender accepts it. It is common for the lender to ask for an increase in offer price and will likely require that you be pre-approved for financing on the home. This is the part of the process that can take several months and that can be frustrating to the potential buyer. Once the bank accepts the offer the process will proceed.
It is important to work with a real estate team that is familiar with the practice of purchasing short sales. Purchasing a short sale is complicated and mistakes are easy to make. We will be sure to craft your short sale offer so that it will protect your interests.
If you are interested in purchasing a Utah short sale, please contact us. Our experience and knowledge will make the buying process a pleasant one for you. If you have further questions about short sales or about Utah real estate in general, please don’t hesitate to contact us.
Buying a Foreclosed Home
It used to seem that buying a foreclosed home or a short sale home was an adventurous thing to do that few actually participated in. Distressed homes were commonly ridden with problems and not well taken care of. Today, however, as many as half of the homes in certain real estate markets are distressed properties. And due to the economy, many of the homes available in the distressed market are/were owned by responsible homeowners who have left the home in excellent condition.
These types of real estate sales have different dynamics than traditional sales. There is more paperwork, a lengthier transaction process, and they can be an emotional roller coaster for the buyer! These reasons are enough to keep a lot of potential home buyers away from the distressed home market, but if you can stomach the potential pitfalls of purchasing a distressed home and work with our experienced distressed market team, you can secure a fantastic home and a substantial discount.
We have years of experience working in the distressed home market and can help you determine if purchasing a distressed home is the right choice for you. Through this site we hope to help you understand the process of purchasing certain distressed processes to help you better determine if you are up for the advantages that buying a distressed home can offer.
Utah’s Distressed Home Experts
Dealing directly with a bank or other financial institution during the purchase of a distressed property can be confusing, frustrating, and a lengthy drawn out process. We have helped our clients navigate through this process countless times and strive to streamline the process to execute the purchase quickly and without the common distressed property complications. If you have questions on purchasing a distressed property, or if you are in danger of falling behind on your mortgage, please do not hesitate to contact us. We look forward to helping you through the process!