| We get a lot of calls from people looking to buy a | | | | deal" are greatly reduced. And you will have to have |
| foreclosure home. Most of these folks are wanting to | | | | the patience of Ghandi for the process to complete |
| buy a home in foreclosure because they see it as an | | | | before you can become the new homeowner. |
| opportunity to buy a home for a great | | | | However, homes for sale that are in some stage of |
| deal.Unfortunately, most people do not really know and | | | | foreclosure can be in relatively decent shape, as the |
| understand what a foreclosure home really is. In fact, | | | | homeowners want the home to SELL so they do not |
| "Almost 20 percent of men aged 18-34 and 20 | | | | fall into foreclosure. Also, some homeowners may be |
| percent of single people don't even know what a | | | | willing to do minor repairs if requested by potential |
| foreclosure is, according to " | | | | buyers. |
| First, there is a difference between a foreclosure | | | | *Buying a Bank Owned Home: |
| home and a bank owned home.A foreclosure home is | | | | Bank owned homes, on the other hand, CAN be better |
| a home that is technically still owned by the home | | | | deals and take WAY less time to navigate the |
| owner, but that homeowner has defaulted on their | | | | contract and closing process. Why? Well, banks are |
| mortgage payments. The mortgage company (or | | | | not in the business of owning properties so they will |
| bank) has started the foreclosure process and there is | | | | usually list the home at well below market value and |
| a date set (usually about 6-9 months from the 1st | | | | will be quick to approve offers and close quickly. |
| defaulted payment) for the home to sell at the | | | | Bank owned home, though, tend to be in some stage |
| foreclosure auction. The homeowner has the option of | | | | of minor to horrible disrepair. Some former |
| catching up on their mortgage, selling the home or | | | | homeowners who fall into foreclosure take out their |
| letting it fall into foreclosure.A bank owned home is a | | | | frustration on the house. We have seen many bank |
| home that has already sold at the foreclosure auction | | | | owned homes in Colorado Springs that have holes in |
| and is now the sole property of the bank. | | | | the walls, massive pet stains, destroyed kitchens with |
| Second, there is a BIG difference in the buying | | | | no appliances, the list goes on... And, generally, banks |
| process of a foreclosure home and a Bank Owned | | | | will not fix any of this before putting the home in the |
| Home. Buying a Foreclosure or Bank Owned Home: | | | | market. What you see is usually what you get. |
| *Buying a Foreclosure Home: | | | | So, if you are looking for a great deal in the current |
| If you are looking to BUY a foreclosure home, | | | | real estate market, make sure you know what you |
| chances are it will be a short sale. A short sal*e | | | | are getting yourself into. You will also want to make |
| means that the bank will have to agree to take an | | | | sure you hire a competent Realtor® to represent |
| amount less than the mortgage. In these cases, a | | | | you in the purchase of your foreclosure or bank |
| home buyer who puts an offer on the home, may | | | | owned home. The banks will have heavy negotiators |
| have to wait up to several weeks before the bank | | | | on their side (in both foreclosure and bank owned |
| accepts/approves the offer and it could take up to 6 | | | | cases) and you should have the same support and |
| months before closing on the home. | | | | representation. (And remember, in almost every case, |
| Additionally, the bank will generally NOT take much less | | | | your representation will be FREE. |
| than market value... so the chances of "getting a great | | | | |