Bank-Owned Properties and Short Sales

 
It is very important to work with an experienced and reputable real estate agent when looking to buy or sell a banked-owned or short sale home.  Definitions of bank-owned and short sale homes can be confusing.

A bank-owned home has gone through the process of foreclosure and is no longer the property of the previous owner.  It is now owned by the bank that held the mortgage or HUD (U.S. Department of Housing and Urban Development).  These homes are also referred to as REO (real estate owned) homes.  Purchasing an REO or HUD home can be a trying experience.  You may be able to purchase it for less than the appraised value, but often the home is in a state of disrepair because it may have been vacant for a long period of time.  The added expense can make it difficult if you do not have the financial resources to pay for needed repairs or the ability to add the extra cost to your bank financing.  Aslo, the property disclosures that most residential property owners are required to provide potential buyers are not required for these homes.  Lead based paint, radon, mold or any know defects are not required to be disclosed as they are with non-banked owned properties.

Brian can help you navigate these potential perils.  It is very important to work with a knowledgeable agent so that you have a successful home sale or purchase experience!

A home offered as a short sale is being sold for less than the mortgage amount that the homeowner owes to the bank.  Both the seller and the seller's lender must agree to accept less than what the homeowner owes to the bank and the contract that is offered by the buyer must be signed by both the seller and the seller's lender.  This process can sometimes take several months!  Whether you are a seller or a buyer, Brian can walk you through the process and help you reach your goal.

Buyer or selling a distressed property can be both challenging and exciting.  Please contact Brian and his team to find out how Kemp & Company can make the process smoother and less stressful for you!