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A Walk, Home Buyer in Napa, CA

We are relocating to Napa this summer. A lot of the homes I have looked at one line are REO or short sales. Since we have kids, we will

Asked by A Walk, Napa, CA Fri Feb 19, 2010

need to find a home, make and offer and move in before school starts. Are you finding the process of buying short sales and REOs is still very long and drawn out. Should I eliminate those homes from my list of homes to look at?

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Shorl sale properties are taking a long time unless is wachovia listing
REO is a quicker response 2-3days
I work with Team1Realty and we have 200 REO bank Owned Properties.
Let me know if I can help you
I cover napa,solano counties
1 vote Thank Flag Link Fri Mar 12, 2010
There is no definitive answer. Each house is a different situation. A short sale COULD take up several months to complete the transaction. REOs are typically a faster, and smoother transaction. What you really need to do is sit down with your agent, communicate your situation, and what you're looking for. It's a difficult market, and the sooner you start understanding how it works, the better prepared you will be when you start actively looking.
1 vote Thank Flag Link Fri Feb 19, 2010
What David Johnson said is great and right on. Your experience will be dictated on what price you are working in. If you are looking to purchase a home under $400,000, for the most part, you will want to utulize David Johnson's feedback. The price ranges over $400,000, you will be leaving the larger pool of REO's and SS.
There are some great homes for same under $400,000 available right now. There is a house on Creekside in Napa, a traditional sale, in a great neighborhood, walking distance to West Park Elem. School for $356,000. This is neither a Reo or SS. Good luck. Pick a trusted and experienced Realtor you can build a long term relationship with and begin working on that trust benefit.
Stefan, Pacific Union International
1 vote Thank Flag Link Fri Feb 19, 2010
Forget short sales, the timing is too unpredictable. REO's have a very predictable timeline, but the bidding process can be very competative so even if you are aggressive you aren't always the successful bidder. to get the best results. Your best bet is to start looking for a home early and use an experienced agent to help you get the best results.
1 vote Thank Flag Link Fri Feb 19, 2010
REO's are actually easy to work and are similar to a normal sale and of course are competitively priced. The Short Sales do take many weeks for a response to an an offer and need that time period to wait. Meanwhile the regular listings in Napa have adjusted and with some screening can be very well priced . I live and sell in Napa and have for many years.
1 vote Thank Flag Link Fri Feb 19, 2010
Generically, don't eliminate anything.

The listing agent might be very good at putting together a short sale package to the bank and the bank may in turn be good at expediting.

Look for the house you wan to live in and make sure you get pre-approved to make the transaction go quicker!

Best of luck and send me a bottle of wine when you get there!
Web Reference: http://flavors.me/fredglick
1 vote Thank Flag Link Fri Feb 19, 2010
Actually purchasing REO's is much faster and simpler than purchasing a Short Sale. The REO is owned by the bank, and may banks will respond to offers within a few days. Some of the properties may have been damaged in some way by the former owner, so financing could be tricky if the banks won't pay for repairs needed. Often they will add the cost of those repairs to the sales price and authorize repairs to be done prior to financing and paid at closing. Don't shy away from REO's. You can also have luck with Short Sales if the lender has already approved of a particular price, the listing agent KNOWS what he or she is doing, AND the owner has completed all the necessary steps to have all required docs submitted. Finding one of these properties is sweet, because, in these cases, someone else has made an offer, waited the 4-6 months for the process, and then backed out. All you need to do is go in with an offer at or near the approved value and you should be "good to go". There is also some legislation which is set to be put to practice this spring, which will speed up the process, but, the best advice I can give you is, get a reputable Realtor AND Mortgage Lender who work well together, and go find your dream home. Good luck.
1 vote Thank Flag Link Fri Feb 19, 2010
It is not as bad as it has been the last few years. The lenders are putting together groups of employees who just work on the REO's or Short Sales, but not both. Working with people on the listing side, selling side and lending side who all know what they are doing and what is expected makes the entire transaction go smoother and much faster in most cases. With the extra training I have been taking in distressed sales this year and last, I've got a good idea of what is needed and how to deliver it. If the home you choose is a short sale or REO (bank owned) then you might very well get a good price. The fastest sales are still, however, the fair market (non-distressed) ones and then it is up to your lender and Realtor to help get it closed in a timely manner. There are some great properties on the market right now and the interest rates have never been better. It is a great time to invest in your future!
0 votes Thank Flag Link Fri Jul 16, 2010
I bought my home in Napa two years ago and it was a foreclosure. I couldn't be happier. I used the web site http://www.foreclosures.com to get a list of all of the foreclosed or pending foreclosure houses in the area. From it I was able to get an accurate picture of what was available without any pressures from realtors or brokers trying to steer me towards any particular property. The bank was very motivated to get the house off of their books and we wound up closing 3 weeks after I submitted my contract so when they tell you 6-8 weeks, remember, everything is negotiable. I recommend that you definitely use a licensed realtor to submit the contract and get through all of the inspections and financing. Choose someone who really knows the area and the real estate laws. In a buyers market, you, the buyer, have all the power. If any little detail of a deal doesn't sound right to you be prepared to walk away from it unless you get your way.
I love Napa and hope you will be a resposible and welcome addition to our community.
0 votes Thank Flag Link Mon Apr 12, 2010
Not necessarily. Some of the best buys are short sales or REO's and there are new proceedures and even new escrow departments set up at the title companies to help speed the process along. You need to find a home you really like though in a neighorhood that is comfortable and compatible with your lifestyle, then look at prices and if what you like is a short sale or bank owned, don't be afraid of it. An agent knowledgeable in those type of sales (and the neighborhood and local market) is the biggest help as there are lots of things you learn by doing those sales, so ask if your agent has done one before and how it went. Only about 10% of short sale listings actually sell instead of going into foreclosure, so be sure you find someone with a success rate. Lots of luck to you. Napa's the best place to live in the country I think, so you're on the right track just deciding to live here. And, don't forget the tax credit is nearing the end of its term, so if that's important to you, you need to be in escrow in a sure thing by the end of this month.
Sincerely,
Dotty Hopkins
Windermere Napa Valley Properties
0 votes Thank Flag Link Tue Apr 6, 2010
Breanna nailed it - work with an agent to figure out what is available and suits both your timing and budget.

Good Luck
0 votes Thank Flag Link Fri Feb 19, 2010
0 votes Thank Flag Link Fri Feb 19, 2010
That is a very common question. The truth is that buying any home right now probably takes a little longer to close escrow than in the past. I wouldn't eliminate REO's and short sales from your search because sometimes you can find really good deals that way. You can then compare them to other houses on the market so that you can make an educated buying decision. I think the key is to look at the entire inventory of homes available in your price range including REO's and short sales and find what best suits your needs. If the house that you chose is one of those homes, then you can decide whether the time frame fits within your needs. If not, have a 2nd or 3rd choice as a backup.

I hope this helps and if you need additional information, I am here for you. You can go to my website http://www.KellyNorris.com and search the entire Napa Valley if you wish. My site includes all the listings in the area. I also have a list of properties that are available that aren't on the MLS.

I live right here in Napa and I can answer any questions that you might have. Good Luck! You will love living in Napa! It is a wonderful place.
Web Reference: http://www.KellyNorris.com
0 votes Thank Flag Link Fri Feb 19, 2010
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