Foreclosure in Palmyra>Question Details

Tim, Home Buyer in Palmyra, PA

Is a Short Sale or Forclosure better for the buyer?

Asked by Tim, Palmyra, PA Tue Feb 19, 2013

There is a house which will likely go under foreclosure in a few weeks. But I heard from a friend of the lawyer for the home owners that they may want to offer it in a Short Sale, but that may just be a rumor. As I am interested in buying can someone tell me if I should try to get the short sale now or wait 3 weeks until the bank takes it over? And please tell me why if you can. thanx

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My opinion is that it is all circumstantial, my investor clients usually prefer foreclosure properties. Simply because they are usually easier and can close faster.
1 vote Thank Flag Link Tue Feb 19, 2013
are you a 1st time home buyer or are you looking to become an investor?
0 votes Thank Flag Link Tue Feb 19, 2013
1st Time Home Buyer
Flag Wed Feb 20, 2013
Just as an FYI, the foreclosure process will take at least 6 months. So, if you are willing to wait, you can get it for less. However, if you want it right now, it is best to offer as a short sale.

Kim Lutes
Real Estate Solutions of Harrisburg
0 votes Thank Flag Link Tue Feb 19, 2013
And so a forecloser total price will more than likely be lower than a short sale home price, is that correct?
Flag Wed Feb 20, 2013
That is going to depend on what type of buyer you are and what type of situation you are in. Typically I find that foreclosures move much faster than short sales. Short sales can take 90 to 120 or more depending on the bank. It will also depend on your financing. If you are securing a loan, the bank will usually only guarantee your interest rate for 60 days. I hope this helps!
0 votes Thank Flag Link Tue Feb 19, 2013
Mrs Lutes says a foreclosure will take longer to buy and Mrs Keiper says a short sale will take longer to buy. Can anyone help clear this up for me please?
Flag Wed Feb 20, 2013
I agree with Chris. A house that has been foreclosed is then bank owned and it is easier to sell than a short sale that may or may not sell. With a short sale the listed price is not the price the bank will accept and often the bank wants more which confuses a buyers. Short sales can take anywhere from 45 days to never to close and can go into foreclosure meaning they won't sell at all. Banks owned homes are often in poor condition, so I suggest looking at all homes in your price range no matter who owns them.
0 votes Thank Flag Link Tue Feb 19, 2013
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