Short Sale @299K VS Lender Owned @299K

The Buyer has to know the difference here, and the difference is huge.

Example

A Short Sale is when the homeowner who is facing foreclosure sells his home for less than the value of his loan. Actually the homeowner can`t sell anything, with out the approval of his lender. This process really depends on the foreclosure date, and how much money the lender is losing. The approval process can take  from 1 week to 8 weeks without a word from the lender.

What I am seeing in the MLS are homes that are valued at 400K being offered at 299K. Everyone wants a deal, We live in a Wal Mart World, However read the Remarks “Short Sale Lender approval required” Which means maybe we can sell at this price. Hey put yourself in the banks shoes, would you just give your money away?

Now this Blog is about the price difference between Short sale and Lender Owned Offered on the MLS. Personally, I am not a big fan of Short Sales. It is my opinion that less than 20% actually close.

Now when you see Lender Owned in the MLS. This means the the bank has already foreclosed on the property. The property is now owned by the bank. The bank is not in the business of property management. They have priced their property at or just below comps, most of the time. So when you see that 400K property being offered at 299K. You are looking at a 3 to 5 day response, depending on the bank. Now when dealing with Lender owned property`s expect a 3 to 5 day response time between counter offers.

Most Clients expect that 24 hour turn around. It is a different ball game waiting 3 days to 8 weeks to see if you will be moving into your dream home, or not even getting a answer.