Foreclosures And Bargains
Looking for a deal in Huntley, Algonquin, Lake In The Hills & Carpentersville?
This page contains short sales, foreclosures and REO homes for sale in Huntley, Algonquin, Lake In The Hills & Carpentersville
Understanding 4 The Types Of Bargain Homes & Foreclosures
A short sale occurs when a home owner is struggling to make their payments. They are still paying but they feel they can’t last long doing it. When this happens, they hire an experienced Realtor and an experienced short sale attorney. The attorney contacts the bank, explains the hardship that caused the problem and starts to negotiate a short sale. If the bank agrees to proceed, they get a BPO (Broker Professional Opinion) of what the home is worth and they negotiate how much they will accept when the home is sold. For example, if the mortgage balance is $200,000 and the home owner will net $150,000 from the sale, the bank may agree to accept $150,000 rather than go through the time and effort to foreclose.
Foreclosure & REO
If a bank has tried everything tio get the home owner to pay, they may begin foreclosure procedures. This is a long and expensive procedure to get the home owners out and get the title to the property. Once they foreclose and own the property, it becomes REO (Real Estate Owned)
Distressed homes are those that are in danger of becoming short sales or foreclosures. These are often bargains because the owners are motivated to sell to get out of difficulty.
There are sometimes homes that are listed at a price that is too low. These homes aren’t foreclosures or short sales. Under valuation could be caused by Realtors and home owners who don’t know market values in an area. I find these homes for my clients by searching the new listings every day and letting my clients know when I find one that is priced lower than average. I recently sold a home in Sun City Huntley that I feel was priced about $20,000 too low. My client and I got an offer in just a few hours after it was listed. I also sold a home in Pingree Grove recently that in my opinion was priced about $30,000 too low by a bank. If you would like to be on my list of people I inform when I see bargains, call me at 847-471-7177.
What You Need To Be Ready
The prepared bird gets the worm
The bigger the bargain, the faster it sells, so you need to be ready to get one. You will need to have a pre-approval letter from a bank or mortgage company or proof of funds to buy the property. Banks generally will not accept any conditions like “home to sell” when you make an offer on foreclosures. You will also need to see the property on short notice and the ability to make a decision quickly if you decide to go ahead. You may wish to line up a good real estate attorney and home inspector along with other contractors you may need to fix up the property. I can help you with all these resources. Call me at 847-471-7177 for good recommendations.
Need to finance your flip? Call me for contacts at companies that finance flips based on the value of the property, not your credit.
What Are The Dangers To Buying A Bargain
There are dangers involved in buying bargain homes, and foreclosures. It can take a long time for banks to approve short sales and foreclosures. You will need patience to be successful. If you buy a home that has been winterized, the bank probably will not allow you to turn on the water to check the plumbing. Banks will not give you any guarantee that appliances etc are working or will still be there at closing. You'll have to sign some documents that say you agree to these types of terms Also, there are higher closing costs involved with buying bank owned properties and short sales.
Short sales, foreclosures and REO homes can be great investments for flipping and for rentals. My wife and I bought our current home from a bank. It had been vacant for two years but was in great condition. We got a fantastic bargain and you can too. You need to work with an experienced Realtor and negotiator like me, Tony Delisi “The Results Guy” at RE/MAX Unlimited Northwest. Call me now at 847-471-7177 and let’s talk about how to find the bargains and how to finance them.
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