Saturday, June 13, 2009

Foreclosure Experience - 4

The problem is not just damages. Even we found some house which we could imagine to repair, they were short sell listed which were attempted to be kept in the market for 4 months even with offers. As mentioned in my previous posts, we needed to move in one month, so they were not for us even we liked them. In case of short sell list, even you offered, you never know if you could get it until these 4 months period is over. So, after 4 months of waiting, you may have to start over house hunt from the very beginning.

The house which could not be sold after Short Sell Period would become "Bank Owned" meaning foreclosure. Owner family needs to leave and house would be under control of bank. There are problems there as well in addition to the damages leaving owners left. Bank is not regular seller. So, the bank conditions are "as is". You need to check there are vital damages in the house which might cost you more than you are paying for owning. Roof damages and pluming might be major ones. There might be termite problems. Even with one or more of these problems, owner bank will neither repair nor reduce the offered price. Any problem will become your own problem, if any.

Foreclosure houses look like having new problem this time. Because people are paying attention to the lower cost of bank owned houses market, people tends to bid any and many properties. Then, it became like auction of foreclosure home. Actually, the house we offered had 59 offers. This tendency inevitably push up the price.

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Marketing Unscrambled, learn to earn 14 said...

Shaw, short sales take a long time and you do not know if you will even get the house after that amount of time. It makes it hard to sit and wait for it. The people in the house are not the ones making the decision on the sale of the house or the price. It is the bank and they do take their time about things. That does not help for a wick sale of the house.
Dan and Deanna "Marketing Unscrambled"

Shaw said...

Hello Dan & Deanna,

Yes, banks do not care about buyers' situation, and do not agree to repair or deal with cost due to damages. It is one form of market, but not sound one.

Thank you for your comment.
Shaw Funami
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Hilary Melton-Butcher said...

Hi Shaw .. well done on hanging in there .. and getting through this terrible period in your lives ..

Good for you - & Snowy ..
Hilary Melton-Butcher
Positive Letters

Shaw said...

Dear Hilary,

Thank you for your cheer! I appreciate your subscription, too. I hope some day our Snow can meet you!

Thank you for your comment!
Shaw Funami
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