Ok, maybe not steal a home, but you can get a really great deal if you have the time and patience. Homes that must go through a short sale here in the Denver Co area can be some of the best bargains on the market.
What exactly is a short sale? A short sale is a home that is for sale but the sellers owe more than the market value. The sellers ask the lender to take less than is owed against the home to sell the home, rather than risk it going into foreclosure.
Why would the lender agree to this, you ask? Recent reports have determined that if the bank has to go through the foreclosure process, they will end up losing more money than if they had agreed to take less from the seller. Sounds good so far, right? Then what is the catch?
As of the writing of this post, Bank of America owned over 50,000 homes. (all over the country, not just in Denver CO) They also had over 600,000 mortgages that were over 90 days late. The problem is, the lenders are overwhelmed and any loan decisions take time. Sometimes, lots of time. Some smaller lenders may respond in a couple of days. The larger lenders may take months to respond. We have one short sale that took almost a year to close. That is why the sellers must price their home aggressively.
So who can take advantage of these short sales? Anyone can, but it looks like investors and first time buyers are in the best position. If you are renting or don’t have a home to sell, (in other words flexible) then a short sale in Denver, CO may be perfect for you. For more information on buying or selling a short sale in Denver Colorado contact me.
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