Buying foreclosures, "bank owned" properties in NOVA (short sales, real estate market)

[eikalilos]

Hi,

First post, been lurking a while even before joining.

Looking to buy in NoVA -- not set on a particular area though there is some leaning to places in PWC, FFX Co, and Loudoun (born and raised in the area, not moving here). Many of the homes -- well most of them -- in the price range we're looking at are 'bank owned'. Some are 'short sales'.

While we'll use a realtor to help with the purchase (and we'll probably stay away from the 'short sale' properties based on some reading I've done), has anyone purchased any of these lately or know anyone who has? Is there anything to be careful of or look out for other than the condition of the home and how much paint or carpet it may need? How smooth was the transaction? How long did it take?

I guess I don't want to get into a position where back taxes are owed as I saw in another thread somewhere, but IIRC that was a short sale.

Thanks.

[DavidS827]

In a foreclosure or short sale the length of time it takes to close is based almost solely on how long it takes the lender to approve your offer. I don't know where you read that foreclosures are better than shorts, but I wouldn't rule them out. In many cases, the short sales I have shown are in much better shape than almost every foreclosure I have been in. The other thing to know about forclosures is that they are sold "as is" whereas shorts allow home inspections for more than "informational purposes". Many of the banks are also requiring you to be pre approved my them, even though you probably are already approved by your own lender. They say it is so that they can be sure that the loan will close, but it is basically so that they can try to recoup some lost money by stealing the loan from someone else. Personally, I don't see how they can do that legally, but it is what it is.

When you go to hire a Realtor, make sure they know how to deal with banks....they are whole different animal.

[twinmma]

My realtor is working on a short sale for another client and it has been over 6 months. She said a short sale can get the whole way to settlement and then not happen on that day. If you have the time to sit back and wait months then go for it. Just know that after all that waiting you may end up losing the house-and maybe by that time the market goes back up and then you are "stuck" so to speak paying more.
We initally put an offer in on a short sale and then got out of it on the inspection...Not only was the inspection bad (which can happen with ANY home, short sale or not) but we are renting an apartment and we didn't want to break our lease to find out months later that we lost the house.
GOod luck

[DavidS827]

Twinmma brings up a good point. If you do put in a contract on a short sale/bank owned make sure your realtor knows how to word the contract so that you aren't sitting around for months. IMO 30-45 days is more than enough time to get to the closing table with a bank.

[seysoldTD]

Things are definately evolving in NOVA and local real estate markets. If buying a Short Sale property make sure you complete a short sale contingency, this document allows you to terminate contract prior to the third party approval (usually the bank or banks). To get things done in a more timely manner you could ask your buyer agent to insert language which may speed up the banks approval process, the listing agent and seller probably will not like, but it is what it is. If buying a forecosure, usually things are approved in a timely manner since you are dealing directly with the bank. Hope this helps.

[x84viper]

can anyone recommend a good real estate agent that has dealt with short sales before? I am looking to short sale my house. Appreciate all the help

[seandankers]

Bank owned properties and short sales are driving the local markets. I have sold 5 bank owned properties so far and have 23 assigned to me. There are bank owned properties that are a few years old and are as new. You also have the "investor specials" that many of us have seen.

I would suggest placing multiple offers on multiple short sale and bank owned properties. As long as all contingencies are included in your offers, you should be able to pick one up in no time. Therefore, you should not have to wait long.

[Fabian07]

[SIZE=3]Hi,[/SIZE]
[SIZE=3]Well I am trying to help my parents find a bank owned properties. We also were looking into short sales/ foreclosure properties, but we were advice that they take forever to be approved. In which my parents really do not have the time. Would also be wise to purchase a home in Bristow?[/SIZE]

[joshjungalo]

the amount of paint and carpet you will need is the least of your concerns on a foreclosure.... If paint and carpet is all that it needs then you probably found a good one.

[VRE332]

Originally Posted by joshjungalo

the amount of paint and carpet you will need is the least of your concerns on a foreclosure.... If paint and carpet is all that it needs then you probably found a good one.

you're absolutely right.. you should see this house these people rented in my neighborhood. They turned it into a huge mess. I think the next owner would have to rip all the sheetrock and floor down to the studs and start over.