Distressed Real Estate

This is a great time to be in the real estate market looking for a home. Prices are dropping to ten year lows and a range of distressed property is available to the lucky buyer with access to capital.

Realtors are hungry. Banks are hungry and homeowners who find themselves upside down is their dream home turned nightmare are willing ti negotiate on your behalf with their lender to sell to you at prices far lower than the outstanding mortgage amount. This strategy is called short sale and because the overburdened banks are willing to listen to offers bargains abound for the savvy buyer. Yes these truly are the days.
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However a word of warning worth heeding if you are considering entering the foreclosure foray is to beware of foreclosure auctions. Unless you are totally aware of what you are walking into it is probably a better strategy to let the bank buy back the home at the auction, deal with the problems and then sell it free and clear of all liens, tenants and problems.

A short sale is worth considering as the home owner will be working with you, you will get ample opportunity to view the home and once again before closing you can view the home to make sure that all I in order and that the home is vacant if that was part of the agreement.
Many foolish souls have gone to a foreclosure auction, bid on and bought a home that unfortunately came with the old owner who was now a tenant who the new owner had to evict at his/her own expense. Also because the owner is in foreclosure you will most probably not get an opportunity to view the home pre auction so you will in effect be bidding on a mystery. Many unhappy owners decide to wreck havoc on their foreclosed home before moving out so be warned. Surf the Washington State MLS listings for homes for sale at GetMLS.com


Also if you happen to win a home at an auction and give the bank a certified check for $5K to $10K and are considering financing the balance within thirty days you will need to have the property appraised to satisfy the lender. If the old homer is still ensconced in the home and is unwilling to allow your appraiser in then you stand to lose the deposit you gave the bank at the auction.
The best strategy for the non pro is to stick to bank owner properties (REO) or short sales.

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Check out the Seattle MLS Listings at Washington MLS