There`s a common misconception among consumers who want to buy real estate from a bank. Does this provide them with the best deal? Maybe yes, but maybe no. Let`s take a look at the reality of the situation.
The common logic is that since the owner`s equity has been washed out by the bank`s takeover of the property, the bank owned property must be a good deal. Real estate professionals immediately recognize this is not necessarily true. There are many times when the property is still worth less than the amount of money that`s owed to the bank " making the bank`s price the wrong price.
Is Buying an REO from the Bank the Best Deal??
Showing posts with label REO. Show all posts
Showing posts with label REO. Show all posts
2.15.2011
After foreclosure: How long until you can buy again?
NEW YORK (CNNMoney.com) -- Walking away from a mortgage you can still afford to pay has consequences; everyone knows that. Your credit score is shot and it can be impossible to get credit.
Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater mortgage. They may owe, say, $500,000 when their house value is only valued at $350,000. And, they figure, there's no way it will ever be worth what they owe so it's better to get out from underneath the burden.
To read full story click below: http://http//money.cnn.com/2010/05/28/real_estate/homebuying_after_foreclosure/index.htm?iid=EL
Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater mortgage. They may owe, say, $500,000 when their house value is only valued at $350,000. And, they figure, there's no way it will ever be worth what they owe so it's better to get out from underneath the burden.
To read full story click below: http://http//money.cnn.com/2010/05/28/real_estate/homebuying_after_foreclosure/index.htm?iid=EL
2.14.2011
'Short sales' avoid foreclosures
After living in their home 17 years, a Lancaster County couple faced the unthinkable:
The prospect of losing that house because they fell behind on their mortgage payments. The financial nightmare started when the wife lost her job in the medical field.
But instead of awaiting foreclosure, the couple decided to list their Warwick Township residence for "short sale" — a transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
It's called a short sale because the property sells "short" of what's owed on the mortgage. And real estate professionals say short sales can be less damaging to a borrower's credit rating than foreclosure
Read more: 'Short sales' avoid foreclosures
The prospect of losing that house because they fell behind on their mortgage payments. The financial nightmare started when the wife lost her job in the medical field.
But instead of awaiting foreclosure, the couple decided to list their Warwick Township residence for "short sale" — a transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
It's called a short sale because the property sells "short" of what's owed on the mortgage. And real estate professionals say short sales can be less damaging to a borrower's credit rating than foreclosure
Read more: 'Short sales' avoid foreclosures
Subscribe to:
Posts (Atom)