I've been helping First Time Buyers for 23 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.
Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.
For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."
And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.
There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay.
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
*If you thought my answer was helpful, please give me a â€œThumbs Upâ€ or â€œBest Answer.â€ Thanks!
Short Sales are listed with all the regular homes on MLS, The only difference for a buyer on a short sale is that the time frame will be longer. The owner still owns the home, but the owe more on the home then its worth, so the sellers are asking to short the bank the difference, that's where "short sales" got there names from. But the bank is still looking for fair market value on the home. I do specialize in Short Sale, and I also cover the Newburgh area, city & town. If you have any other questions, you can contact me at firstname.lastname@example.org or you can go to my website for short sales, its free and has a lot of information that might help you. http://shortsalesrelief.com
Best of luck!
If you want the short sale to have a chance of actually closing, you should use a Realtor - and one that has experience closing short sales. Contact and 'interview' a few local Realtors - if you don't have one already. Find the one who is the best 'fit' for you and also has short sale experience.