La Costa California~ Whats the differences between, Short Sales, Bank Owned Foreclosures or Auctions?
Today’s Real Estate environment is overwhelming. Housing experts have different opinions regarding the market’s direction and how to find the good buys.
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Before jumping the gun and buying a foreclosure, short sale, or REO home, let’s review the differences to help you decide which direction is the most suitable for you.
Short sales
typically occur when a borrower’s home is worth less than what is owed to the property lender. In some cases, the lender may approve a short sale, allowing the property to sell for less than the amount owed. In this case, the lender approves the short sale and takes less, and the borrower is no longer responsible to pay the loan. Sometimes, the lender requests the borrower to take back a loan to pay the deficient amount between what was owed and what the property sold for. However, this scenario can often be avoided. The borrower can walk away and in return, the lender can sell the home and get their money out.
To learn more about short sales and to search available short sales in La Costa, Carlsbad click here.
Foreclosures Scheduled for Auction
We regularly attend the Foreclosure auctions, held in either downtown San Diego on the courthouse steps or at the Courthouse in El Cajon. For these properties, the lender was unable to produce a viable solution for the homeowner through refinancing, loan modification or facilitate a short sale. In this case, they take them to the foreclosure auction and offer them up for sale to 3rd party investors. Some things to note about these sales:
- pay cash on the spot if you are the winning bidder (Via Certified Cashiers Check)
- you can't buy Title Insurance, which protects you against any unknown or past liens
- properties are sold "as is" condition
- many times the properties are occupied by the current owners or tenant and it is up to the new buyer to handle the eviction process
- if the property is occupied before the foreclosure auction, it is impossible to inspect these properties up front
To learn more about upcoming foreclosure auctions, and to track upcoming foreclosures in La Costa, Carlsbad and other cities in San Diego County, click here.
Bank Owned REO Homes for Sale
These properties have gone through the foreclosure process and are now bank-owned. Banks don't like to own homes because it ties up money they could lending. Usually, offers on bank-owned homes get quick responses. You don't have to wait for months to hear back like you do with short sales. Consider the following:
- in most cases, you can use traditional financing on these properties just like you would with buying a Resale or New Home
- you can inspect the property thoroughly and have appraisals, termite inspections and home inspections performed before closing
- bank-owned homes for sale allow you to buy title insurance
- properties are vacant
- banks are motivated to sell
Many times, bank-owned REO Homes for Sale are just as good of a deal as Short Sales or Foreclosure Auctions. It depends on your personal needs and we can help you decide.
To learn more about Bank-Owned REO Homes for Sale and actually search available Bank-Owned Homes in La Costa, Carlsbad and other cities in San Diego County, click here!
