Bank Owned vs Short Sale Properties

Short Sales vs Bank Owned Properties


What is a Short Sale?
A short sale is a home that is being sold by the owner where the amount of money received for the sale of the home will not be enough money to pay back the full amount to the bank plus any fees associated with the sale. The seller and his/her real estate agent will have to negotiate with all lien holders to see if they will accept a lesser amount and release the lien. Many of these homes are in pre-foreclosure – but not all of them.

What is a Bank Owned Home?
A bank owned home is a home that has been foreclosed on by the bank. The bank now owns the home and is trying to sell it.

Pros and Cons of Purchasing a Short Sale property
The pros to purchasing a short sale property:
You can get a really good deal
You are helping someone possibly stay away from a foreclosure
There is a large selection to choose from right now

The cons to purchasing a short sale property:
The bank does not have to accept a short sale amount so your purchase is not guaranteed to be accepted.
You can waste a lot of time – short sale transactions can be very time consuming. Many times you will not have an answer of acceptance or non acceptance of your offer for a minimum of 15 days to 90 days or longer.
While spending time waiting – you could be missing out on another home or interest rates could increase and lower your buying power
Short sale homes may need some TLC – many of the sellers have just given up and not taken care of the home.
Sold as is – no repairs - The seller typically does not have any money to put into the home to get it to sell. Sometimes your loan will require some repairs to be made prior to closing. This creates a problem. The banks can or cannot pay for some items at closing but typically not.
If there is more than one lien the process becomes tougher.

Pros and Cons of purchasing a Bank owned home?
The pros to purchasing a bank owned home:
You can get a really good deal – they are typically priced substantially lower than the market so they can get an offer in 30 days
The banks have/will clear the liens and taxes prior to closing
There is a large selection of them right now.

The cons to purchasing a bank owned home:
They are sold as is – The bank typically will not do any repairs and will not let you do any repairs prior to closing.
Many of them are in need of some or a lot of TLC
If you are getting an FHA loan – it is sometimes tough to get the appraisal to pass if there are major items that need repair
The process could take 30-45 days – banks only work weekdays and can be slow at responding.

Please contact me for more information or any real estate questions.

Karen Jackson
John L. Scott
206-714-1384
kjackson@johnlscott.com
Search for homes: www. WashingtonRealEstate4U.com

Are you facing foreclosure?

Are you behind in mortgage payments and in jeaopardy of foreclosure? Do you want honest answers about your options? I can help


Does the new housing rescue plan help me?
Do you have an adjustable rate mortgage?
Do you have a negative Amortization loan?
Do you have questions about loan modification?
Are you unsure if doing a short sale is a good option for you?


Call me for a compassionate intelligent conversation. I want to help you.

Karen Jackson
John L. Scott/kms
206-714-1384
www.WashingtonRealEstate4u.com

Free $8,000 To First Time Homebuyers

Attention First Time Homebuyers – Incentives to buy a home

Have you heard of the new revised tax credit? The President has signed into law a bill that provides up to an $8,000 tax credit to first time homebuyers who purchase a home between Jan 1, 2009 and Dec 1, 2009. Best of all you do not have to pay it back. It is a gift.


There are other programs for first time homebuyers still available. There are still zero down loans – the USDA rural loan and state bond down payment assistance/House Key programs are still available.

Housing prices are low and interest rates are really low. Interest rates are hovering around 5%. It doesn’t get much better than this. There are homes you can purchase for approx $1,200 a month – that is cheaper than renting and in the long run you are gaining equity.

If you or someone you know would like more information, please feel free to call or email me. I would be happy to help you search for homes for sale.

Karen Jackson
206-714-1384
kjackson@johnlscott.com
Search for homes at: www.WashingtonRealEstate4u.com