short sale vs foreclosure, which would you rather take as a buyer?

[sLiKk]

Originally Posted by nina702

It's a seller's market right now with very low inventory and because of that sellers sell at higher prices whether a foreclosed property, a short sale or a normal sale.

Its a seller market right now...maybe thats why banks are dumping alot of foreclosures on the market to get the possible higher price on the properties? At least thats what I have seen in the Nassau County of NY.

[T Waffle]

Originally Posted by ethnicappalachian

Yup a real estate agent just informed me that short sales are generally market value and can take up to a year to acquire and clear. What if I have a cash for the asking price though?

It doesn't matter as there may be many liens on a property. When you offer it goes to all the involved party for approval.

The banks where you take mortgage sells your mortgage in a secondary market aka Fannie and Freddy etc.

When you offer a short sell first it is approved by the seller (Homeowner) then it moves to the bank (mortgagee) who reviews the offer and approves, then it moves to secondary market etc. This entire process can take a lot of time. Plus short sell you have to pay the outstanding liens etc.

Foreclosure is a simple transaction between Bank and buyer. You offer they accept, there are no contingencies as its being sold AS-IS.

[airics]

Originally Posted by nina702

Short Sales can take forever to even get an answer from the seller. (I once waited 4 months for an answer).
Plus, most Short Sales you see on the MLS or elsewhere are low priced to get your attention, but have yet to be approved by the seller, who then sees how many people showed an interest and then raise the price dramatically, then have a bidding war on the property, too and that can take months.


A short sales does not mean the house is for sale for less than the retail price. It simply means that the house will be sold for less than the home owner owes on it, which can be way higher than the retail price.

Foreclosed homes may have a list price but like you said, they get the initial offers, collect them, then put out another request for "highest and best" which only means, up your offer or you lose!

I buy and sell homes that have been foreclosed on often and work with many investors who do too. Pricing in Florida for these types of homes (most need work) are at or just below retail if not higher. (So if you purchase such a home and it needs work, you might spend more than the whole house is worth!) It's a seller's market right now with very low inventory and because of that sellers sell at higher prices whether a foreclosed property, a short sale or a normal sale.

it's a sellers market in Florida? most areas are ice cold on pricing

[sLiKk]

Short sale may need less work to fix v. a foreclosure? Is that a true statement for many of the short sales?