Home Buying in 87507>Question Details

Jolenemtz, Home Buyer in 87507

I am interested in purchasing a home in SANTA FE. what is the tip on buying a short sale and or forclosure? How do you bid?

Asked by Jolenemtz, 87507 Wed Aug 24, 2011

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The bottom line is to be qualified to purchase a short sale property and expect to be patient as the short sale buying process is not short by any means. If you want to bid on a foreclosure properties online at the many auction sites listing them for auction, it is best to review the site and make certain you have the cash funds available. Frankly, I would take advantage of the mortgage financing available at the lowest interest rates in years and work with a Realtor who will find you the best value. Good luck in you efforts.
0 votes Thank Flag Link Mon Apr 30, 2012
Jolene - You've got some very good answers here.
In addition to what others have said, I'll throw in my tips:
1 - Work with someone who has sold short sales and foreclosures before. Short sales especially can be very tricky and complex. I, like others here, have sold both.
2 - Work with a Realtor who is Short Sale and Foreclosure Certified. I am.
3 - With a short sale, ask your Realtor to find out how many lien holders there are. The more there are, the more complicated the deal will be.
4 - Many properties advertised as "short sales", are really not. Only the lender can decide whether they will allow a property to be sold as a short sale. The fact that an owner may owe more than the property is worth only means that the owner is underwater - it does not mean that the property will be allowed to be sold for less than the mortgage balance; again, only the lender can make that decision.
5 - In a "short sale" situation ask you agent if the listing broker has spoken with the bank and has found out that they will accept a short sale and, if possible, what price they would accept.
6 - See if you can find out how much is owed on the mortgage. If you offer that much, plus closing costs, I'd bet the bank would approve. Of course, they would because they're not losing anything; unlike the owner who will lose their equity - which is a shame,b ut better than being foreclosed on.
7 - A bank-owned property (also called an REO or foreclosure property) is easier to deal with because you're working with a corporate entity. They're not insulted by low offers - they just reject them and wait for something better to come along. If your offer is rejected, then just submit another.

The more I write, the more I realize there is to write, so I'll just stop now. I hope these tips help.
There are many good Realtors in Santa Fe with experience in the short sale and foreclosure process. Interview a few and go with whomever you feel is most responsive and comfortable to work with.
0 votes Thank Flag Link Wed Aug 24, 2011
I am a qualifying broker in Santa Fe and would love to help you! Both of the comments below are perfect and well received. I have sold both foreclosures and short sales. Short sales usually take much longer to close, versus bank owned properties. Anna's comment is absolutely correct in that you need your preapproval letter in place before you can make your offer! I'm happy to assist you with that process also. Please feel free to contact me and let me know if I can help. beverly@newmexico.com
0 votes Thank Flag Link Wed Aug 24, 2011
When considering purchasing either a short sale or a bank owned foreclosure, its important to understand the differences between the two transactions and how they work.

The short sale process can be more difficult and frustrating to a buyer because of the time it takes and the lack of communication from the seller side. It is not unusual for a transaction to take 6 months to get from start to finish and during that time receive very little feedback.

It is also important to understand that in a short sale, the purchase price more then likely not been approved by the bank. Often times buyer's will get pulled into what seems like a great deal only to find out months later the bank will not accept the purchase price and they counter back with something much higher then what you want to spend. If you are like me I want meaningful feedback through the entire buying process. I want to know that I'm making progress. You need patience to work a short sale to the end and you have to be ok with the deal not going through because of the price. If you hang in there, you can get yourself a good deal. But I do not recommended pursuing a short sale if you have a small time frame for making a move (within 1 - 3 months).

The bank owned foreclosure process can be much more straight forward. We write up a purchase agreement and submit it to the bank. I typically allow 1 - 2 weeks to hear back from the bank, some are faster then others. There is room to negotiate with the banks in many cases on price. Depending on how aggressively priced it is to begin with, it may be prudent to make a higher offer to avoid someone else picking up the deal. The bank typically does not do the repair work that you would find in a home inspection report and often times sells the property "as is". But everything is negotiable.

I prefer working a buyer through a bank owned deal rather then a short sale primarily because of the feedback problem a short sale tends to create. In a bank owned deal, I can keep my clients in the loop. Short sales on the other hand, its difficult to pull information from the sellers side to pass on to you.

Education is the key before jumping into either of these transactions to assure a successful deal. Please give me a call if you would like to learn more about how I walk clients through the process.
Web Reference: http://briantercero.com
0 votes Thank Flag Link Wed Aug 24, 2011
The key is finding an agent that is familiar with the short sale and/or forclosure process. One who will be able to tell you what will be involved in purchasing one of these properties. Every lender has different requirements and procedures so it is important to find an experienced agent who not only understands the process but is also commited to the follow-up and paperwork required to complete the purchase.

It is also important to know the condition of the property and the value of the property. It may not be a "good deal" just because it is listed as a Short Sale or a Foreclosure. Again, an experienced agent with knowledge of the Santa Fe market will be able to help you in that regard.

Please contact me if I can be of assistance in your search. 505-780-3237

Best regards,
Laurie Hilton
Sotheby's International Realty
0 votes Thank Flag Link Wed Aug 24, 2011
Consider working with an agent of your own, he/she will be your best guide. In order to determine a fair offer, review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there; keep in mind that if a property is listed on target or slightly below, multiple offers may occur. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Wed Aug 24, 2011
Do you need a Realtor recommendation for Santa Fe? The commissions are almost always paid by the seller, so you could get an expert to represent you for free. Let me know if I can help you find one. Kwtrav@gmail.com.

-Travis
0 votes Thank Flag Link Wed Aug 24, 2011
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