BANK OWNED HOMES–ARE THEY A “GOOD DEAL?”
January 29th, 2009 categories: Market Trends
There are some foreclosed, bank owned, short sale properties in Chicago. Many buyers think that they are the bargain of the century–this is not necessarily true. And the hassles can be frustrating and fruitless. Here are a few things to be aware of if you are thinking of pursuing a bank owned property.
- The lender has to approve a short sale. Your contract will be submitted to the lender who is taking the loss.
- The lender can take an interminable amount of time to respond. It would seem reasonable that the lender would want to sell and be rid of the property ASAP. Not true.
- This lengthy response time makes it impossible for the buyer to know a specific move-in date. A bank owned property probably works best for an investor who is not going to live in it or a first-time buyer with an understanding landlord.
- Your locked in-interest rate may vanish and you may have to pay more because of the lender’s lengthy approval time.
Fortunately, distressed properties are not the only way to get a “good deal.” Many sellers are understanding the realities of today’s market and are pricing their properties so that they are priced to sell. By purchasing a new home in the more conventional way, you are able to keep your locked-in interest rate, close and move into your new home on a definite schedule.
This entry was posted on Thursday, January 29th, 2009 at 11:09 am and is filed under Market Trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
