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Debe Maxwell's Blog

By Debe Maxwell, CRS | Broker in Charlotte, NC

Foreclosure or Short Sale? The Choice May Be Clearer Than You Think

Home buyer in Charlotte NCBuyers who don't mind rehabilitating property and are strictly seeking foreclosure properties need to be aware of the status of some of the foreclosures in Charlotte NC .   Spending time and money up front to resurrect a property that has been poorly maintained and perhaps stripped of as much as possible by the former homeowner, is far too common when purchasing a foreclosure.  Unlike short sales, many foreclosed properties are in far worse condition--many buyers do not take into consideration, the hidden defects caused by the former homeowners' neglect.


Consider this:  If what is visible to the eye is defective, chances are the property has been in serious need of general, mechanical and structural maintenance during recent years.
 There ARE hidden defects that can be quite costly to repair--especially if you know, upon first inspection, that the home has been poorly maintained.  Compare before you leap--your eyes will likely be opened to the 'foreclosure real world!'  


Foreclosure vs. short saleA good number of the Charlotte NC foreclosures that are on the market have been poorly maintained while the short sales generally have the owners in place, maintaining the home in order to see it through the sale and then leave the property, (relieved that they are not going to suffer the same consequences that an owner who has been foreclosed upon suffers), in good condition.  One of my client's latest relevation summed it up pretty well--"If it took me 6 months to close on a short sale, it is worth the wait; I would rather be working those six months to save even more for a down payment and have little, if any, costly repairs to be made than to be able to quickly close on a foreclosure and have to work many more months to pay for all of the hidden damages on a foreclosure!"  This client, like many others, is now a converted, committed short sale buyer! 

Comments

By Beau Ferguson,  Tue Apr 20 2010, 06:49
Good Blog Debe.........I hear lender response time has improved a little bit on the short sales as well. It's definately the way to go if a client is patient.
AND if the lender honors / plays fair with the professional's compensation!
By Elainegw,  Tue Apr 20 2010, 12:29
Great blog post! Just want to invite you to the REO Expo in Dallas- June 6 - 9. Learn more and connect with asset managers and investors. http://www.reoexpo2010.com
By Debe Maxwell, CRS,  Tue Apr 20 2010, 13:01
Hi Beau! I think the response time has improved greatly--with most of the banks! If the buyer has staying power, it's a great way to go!

Hi Elaine! Thanks! I was just there for a conference a few weeks ago. Would love to return but, this is during our busy market and won't be going anywhere until July! Enjoy your conference and feel free to share any information that you have--this is something I'd love to be involved in!

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