9 thoughts on “Is it better to buy a short sale or a foreclosure?”

  1. Short sales usually can be bought in far better shape than foreclosures, and often for very similar prices.

    Contrary to belief, short sales can close in about 45 days if the agents involved (or buyer and seller) simply know what they are doing and they push the bank for a quick approval.

    These guys offer free consultations: http://www.priorityshortsales.com about the short sale process, good luck on your purchase!

  2. i wouldn’t mind buying a foreclosed home, they usually are good deals for first time home buyers, just be careful with home insurance and the state of the property that the previous owners left it in etc..

  3. With a VA loan everything has to pass inspection.
    Foreclosed homes in my area are in bad shape.
    Missing countertops, AC units, even water heaters – gone
    Get a realtor to help you out with all this – worth their money in gold
    And be patient. It can take 3 to 6 months to get a good deal on a short sale

  4. There usually is no financial advantage. Either the short seller or bank with the foreclosure will still attempt to get market value for the house. A short sale only means that the seller can’t afford the payments and owes more than the house is worth. A foreclosure only means that the prior owner failed to make payments and the bank got tired of waiting. Before buying either, compare the asking prices to similar sales/asking prices to make sure you would be getting a deal. Then expect to wait 4 to 6 months for the bank to approve your offer. Remember that foreclosures are usually sold as is, and in a number of cases, the prior owner has taken out his frustration on the house (damages, missing items, etc.). Since the house would be as is, expect to have to make any repairs on your own.

  5. If you buy new construction you will not get any kind of special deal. They will only build the house if they get enough to pay their costs including any profit they need. If you want to get a good deal because of the slow market you will need to buy a house that is already built and completed. That might be an older house or a newly built house that the builder has trouble selling. Don’t buy a house just because it is a short sale or foreclosure- that simply defines the ownership- it does not require it be a good deal. Pick out a house that has a great location- of course also check the condition.

    A VA appraisal looks a little like they have done an inspection- but it is not the same thing. No one will require you to get an inspection- but I think a person is very foolish not to spend $325- $425 to check out a huge investment like this.

    A short sale often takes several months just to get an answer yes or no. I would stay away from them. Get a good buyers agent and they will tell you all the details.

  6. I think when you mention foreclosure you are speaking of a bank owned property called a REO property.

    Either would be a good choice with a few exceptions.

    #1. A short sale might take too long,depending on the bank you would make an offer to.

    #2. There might be a problem getting either property to pass a VA appraisal.

    #3. The seller (Bank or lender) might not be willing to make repairs found by the appraiser, but required by VA before the veteran is allowed to move into the property.

    #4. The lender might not be willing to make the necessary concessions VA would want them to make as far as paying certain closing cost.

    This would be especially true if you are getting a VA No No. No down payment and no closing cost.

    If you are seeking a property that might need a little repairs that you would do in order to lower the sales price, VA is not normally the mortgage loan to obtain. VA backed mortgage loans require a property to be ready to move into, not needing repairs.

    I hope this has been of some benefit to you, good luck.

    "FIGHT ON"

  7. With short sale, you are dealing with seller and their lender; the house is worth less than their mortgage
    There are delays and obstacles along the way
    With foreclosure, you’re dealing directly with bank (their realtor and attorney) and there are obstacles and delays and they are inflexible
    Either one can be a good deal, but require patience on your part
    Frequently no repairs will be made in such cases, nor reductions in selling price
    The LESS you put down, the more difficult to obtain loan approval (pre-approval is no guarantee) and the MORE you will pay (tens of thousands $) over the life of the loan

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