Have you ever wondered if going after a short sale or a property in foreclosure is worth the time and hassle? You’ve probably heard stories of “amazing deals” on these kind of properties, but really — is it a good investment? Local realtors say you need more than money — you need lots of patience, time, smarts, and expert advice.
Adriana O’Toole admits the values are somtimes great for the buyer – there are usually no inspection issues addressed, it’s “as is is as is.” “But the buying process takes a long time and can be very frustrating. It’s not for a buyer who needs quick occupancy or has no patience.”
“If you’re considering an investment property, investors have to have a lot of cash around to fix things up and re-list or get ready to rent and this is not really the market for that,” says O’Toole.
Several realtors advised working with an agent who is certified in this specialty and and a good lawyer with experience managing these types of transactions.
Roberta Baldwin adds “short sales can be exasperating and endless. Many of them do not close. Once the owner has signed off on the sale, the contract goes to the bank for approval, and that could take months, and then be rejected outright. The lender often doesn’t even own the property outright, having sold it to an “investor,” at some point, so that entity also has to weight in.”
Foreclosures, which are “bank owned,” tend to go faster, because the bank actually wants to get rid of it, but these deals, too, are pretty difficult.
“In my opinion, it’s a grueling way to buy a house, even when money is saved, and the buyer really needs to be committed the the property — and patient. The agent, meanwhile, really needs to know how to handle the silences with the bank and how to keep lines of communication open with the buyer — or all the hard work is for naught,” says Baldwin.
Want to learn more? Find out how to get into this risky segment of the recession-fueled market, and if it’s for you, Tuesday night, June 29, at a free seminar hosted by Bloomfield Public Library. Details, after the jump.
Speaker Barbara Adams has 25 years of real estate experience. Adams will discuss how today’s real estate market offers a variety of opportunities for buyers and investors to purchase a home below market value. Before you jump in, there are many things to consider to ensure you have the knowledge to take advantage of this opportunity.
Adams will present an overview of today’s foreclosure market, steps in the process, terms and conditions, bankruptcy, tracking foreclosures, sheriff sales, building a team before taking the plunge, credit and financial requirements, REOs, anatomy of a short sale property, pitfalls of buying a foreclosure property, other investment opportunities without buying a foreclosure and specific foreclosure properties currently available without buying a list. A NJ licensed mortgagee representative will be in attendance to answer any questions.
Bloomfield Public Library, 90 Broad St. 6:30pm-8:30pm. 973-566-6200
Brokers do not like foreclosure sales because most such sales are handled without brokers and their 6% commissions.
Yes- having brokers give their opinions on such matters is ridiculous. Perhaps a lawyer-
You don’t have the right mindset, Mary. Don’t think of this as journalism so much as turning a trick for advertisers.
A guy I work with bought a foreclosed house at sheriff sale a year ago.
He has been tied up in court for the last year trying to get the previous “owner” evicted. This “owner” hasn’t paid on the mortgage for a few years, but he’s an attorney, so he knows every trick in the book.
So my co-worker has been carrying two houses for the last year, paying attorney fees, spending time in court, etc. trying to take possession of the house.
He has finally gotten an eviction order, and if the previous “owner” doesn’t appeal to the state level, it should be effective in a week. No telling what condition the house will be in.
Buyer beware.