I wanted to talk to you a little bit about buying or selling in today’s foreclosure short sale market.
I know it seems that when you are buying a home, you should be able to put an offer in on a property and have an answer within three days, and then you’re in escrow. Well, I’m sorry to say, it’s going to take a little longer than that. Unfortunately, when dealing with a foreclosure (REO — Real Estate Owned) property, the people at the bank have no emotion and do not have a sense of urgency. I would say they have no feelings! “If you have a good agent they will direct you on the right path.”
On a short sale, even more different, you put an offer in, you get the sellers to accept it and again, you feel like since the sellers accepted it, we are good to go. Escrow here we come! Well, not so fast. Now, you have to wait for the bank to see if they will accept your offer. This takes a little longer, but it could be for the good of all. This might be the perfect home for you and your family, the home you have always wanted. So, wait for it!
Good things happen to those who wait. I know that sounds cliché, but there is some truth behind it. There is nothing wrong with a short sale or a foreclosure (REO) property. Remember it is the market we are in, and it’s not a bad market at that.
If you are a seller and you are selling in today’s market, don’t be discouraged, it can be done! It doesn’t mean your home won’t sell, it will!
Remember all those upgrades and extras you put into your home? I want you to remember, you did that for you, not for the day you were going to sell you home. I am also sure you enjoyed everything you put into it, to make it more enjoyable for yourself. You may not get the price you want, but it will sell. If you are selling because you want a new home, lower interest rates, lower payment or even a different area, well now is the time to buy!
It is a great market, with lower interest rates, which make your payments lower. Hurray! Take advantage of this time. No one knows how long it wil be here.
Contact a lender and ask some questions. There are a lot of good lenders out there. If I could make one suggestion to help you along the way, it would be to tell you to use a local lender, someone that knows our area or the area you are looking in. Internet and out-of-state lenders can usually take longer and sometimes might cost you more in the end. If you are determining which mortgage term is right for you, this is where your lender could help answer those questions.
Would a 15 year or a 30 year mortgage be better for my situation? If you choose a 15 year mortgage you will have a higher payment and usually a lower interest rate, but check that out for yourself. If you should choose a 30 year mortgage, ask your lender how you can pay it off earlier, just by making an extra payment a year.
Remember no question is too dumb to ask. You can never ask too many questions.
As usual, I look forward to next week! If you would like to reach me please feel free to email me at: firstname.lastname@example.org