Suite of Content: Distressed Real Estateby Tim Manni
As most of us are already familiar, distressed real estate–foreclosures, bank-owned or real estate owned (REO) properties and short sales–is taking over many neighborhoods, weighing down home prices and making it harder for homeowners to sell.
However, this very same distressed real estate can come at a steep discount, and pending the condition of the home, could be a great buy for you and your family.
As if a traditional home purchase wasn’t stressful and/or confusing enough, buying a distressed property can be even more confusing and involve even more risk.
HSH.com has put together a suite of content on buying distressed real estate and competing with distressed real estate:
With many markets saturated with foreclosed properties, more prospective homebuyers are taking a closer look at these types of properties than ever before. Purchasing a foreclosure isn’t just a simple matter of scoring a dirt-cheap bargain, however. What should you worry about — or not — when buying a foreclosed property?
Even though REOs can be a bargain, that doesn’t mean you should jump in with your eyes closed. “REO buyers need to do their homework so they understand the property, the market, the neighborhood, and the process,” says Tom Kelly, a spokesperson for Chase Bank.
Here’s what you need to know as a potential buyer of REO property in today’s market.
Short sales differ from most home purchases in almost every way. At every step, from shopping to negotiating to mortgage financing, short sale properties are just harder to deal with. Here’s what you need to know.
If your residence is surrounded by distressed properties, you’re likely concerned about the dampening effect on local home prices. Such concerns naturally become more urgent when your own home is for sale.
The term “distressed real estate” includes short sales, pre-foreclosures and bank repossessions, also called bank-owned homes or real estate-owned (REO) homes. Short sales, in particular, can be priced like bargain-basement goods. The extent to which they depress the prices of other nearby homes depends on the local market, but the effect is real, and since distressed homes account for about a third of all U.S. homes sold, you shouldn’t overlook the negative impact they can have on your home’s current market value.