The only topics in the news more than “interest rates” are “foreclosures and short sales”. They are growing and growing like wild Gremlins, and according to the FED, HUD, and Fannie Mae, they aren’t going anywhere in 2011 – 2012. As the topics of buying and selling foreclosures and short sales become more “user-friendly”, it is important to uncover the myths and facts surrounding those two topics.
MYTH: You need ALL CASH to buy a foreclosure at auction price.
TRUTH: No, you do not need cash to get a better than auction deal on a foreclosure or short sale. The truth is, the majority of homes that go to auction end up listed on the market, and some of these homes eventually get price reductions that lower the purchase price lower than auction price.
MYTH: Buying a short sale or foreclosure can take 6-9 months to close.
TRUTH: In my lending experience in 2010, buying a foreclosure typically takes 30 days to negotiate, get approved, and fund a purchase. Now short sales can take longer IF the listing agent has not received a short sale approval from the seller/bank. The longest that it has taken any of my buyers this year to close a short sale was 6.5 months from start to finish. However, I have seen clients close short sales in 45 days or less too.
For more information on buying a short sale or foreclosure, I would recommend attending one of my FREE Home Buyer Ed Classes (especially if you are a First Time Home Buyer). I host these classes once a month at the New Tulalip Casino & Resort. The class typically fills quickly, and since seating is limited to 35 students, I recommend going to www.2011homebuyered.com to get more information and to reserve your seat!
Related Links That You May Want to Visit:
Special HomePath Financing Program for Buying Foreclosures – 3% Down, No PMI, No Appraisal
HouseKey State Bond Home Buyer Ed Class – State Bond Pays up to $10,000 for Down Payment
Purchase a Rehab Property/Fixer With FHA 203k – Get the seller to pay for the repairs