Home Buying in 08232>Question Details

Elugo039%40g…, Renter in 08330

is it true with a 203k that foreclosures and or short sales are not a good investment due to the limited time you have to be under contract.?

Asked by Elugo039%40gmail.com, 08330 Thu Dec 19, 2013

are foreclosure and or short sales a risk with a 203k

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Great answer by Simon! I would just like to add that when dealing with a foreclosure, just make sure you negotiate enough time to close. A short sale is a long time frame for the seller's bank to approve at times, but once they do, they want you to hurry up and close! You should be able to accomplish all of your due diligence to be prepared to close once the seller's bank approves the transaction.

Best of luck! Feel free to reach out to me with any of your 203k questions.

Joseph S. Cordova
Trusted Mortgage Advisor
NMLS 146855
Evesham Mortgage, LLC
65 East Route 70, Plaza 70
Marlton, NJ 08053
856-985-9944 ext. 103 Tel
856-304-2381 Cell
206-333-0946 Fax
0 votes Thank Flag Link Fri Dec 20, 2013
Actually, FHA 203k loans can be a great way to finance foreclosures or short sales that are in need of repairs or remodeling. The only problem with short sales is that it can take a really really long time to close (averaging around 6 months) and rate locks are not always advantageous. Additionally
FHA loans with a down payment of less than 20% will carry mortgage insurance regardless of the future equity position.
0 votes Thank Flag Link Thu Dec 19, 2013
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