I often have Clients that hope to get a great deal on a short sale or foreclosure. Although there are not as many homes in North Augusta, Aiken or Augusta that fall into this category as in other markets, we have helped some Clients find a good deal on these properties. However, the key factor in finding and purchasing one of these homes is PATIENCE.
First, let me define a these terms. A short sale is a sale approved by the bank at a price that is less than the current owner’s existing mortgage. A foreclosure is the process of a bank, or mortgage holder, taking possession of a property when a homeowner defaults on their loan. Once this process is complete, the property is often referred to as an REO property. The acronym stands for Real Estate Owned.
Why do you need PATIENCE? The primary reason is that banks are very bureaucratic. The decision maker is often located in another market, and they are very, very slow to respond. After an agreement is reached upon price, expect the bank to dictate the terms of the sale. For example, banks rarely allow a buyer to occupy the property prior to closing and negotiating even the simplest of repairs can be problematic. You should expect the approval/closing process to take 90 days!
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Looking for a Deal on a Short Sale or Foreclosure?
I often have Clients that hope to get a great deal on a short sale or foreclosure. Although there are not as many homes in North Augusta, Aiken or Augusta that fall into this category as in other markets, we have helped some Clients find a good deal on these properties. However, the key factor in finding and purchasing one of these homes is PATIENCE.
First, let me define a these terms. A short sale is a sale approved by the bank at a price that is less than the current owner’s existing mortgage. A foreclosure is the process of a bank, or mortgage holder, taking possession of a property when a homeowner defaults on their loan. Once this process is complete, the property is often referred to as an REO property. The acronym stands for Real Estate Owned.
Why do you need PATIENCE? The primary reason is that banks are very bureaucratic. The decision maker is often located in another market, and they are very, very slow to respond. After an agreement is reached upon price, expect the bank to dictate the terms of the sale. For example, banks rarely allow a buyer to occupy the property prior to closing and negotiating even the simplest of repairs can be problematic. You should expect the approval/closing process to take 90 days!