The good bad and and ugly. Why you need Tony Barker to help buy those homes?
Premiere Home Realty
What is a Short sale and Why Can it Be Better?
A short sale is a sale of real estate in which the sale proceeds is less than the balance owed on the loan for the property. It usually occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a loss is better than taking back the property. Both parties consent to the short sale process negotiations because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. When you, as a buyer, closes with a title company you can be sure your home will be free from additional liens. Short sales can save you more than a foreclosure for a couple reasons, one is the home should be in better shape since the seller is working with their lender and the loss to the lender is less than a foreclosure so they may deal.
What is a Foreclosure (or REO) and Why Can it Be Better?
The typical method of foreclosure in Texas involves what is known as a non-judicial foreclosure. When the deed of trust is initially signed, it will usually contain a provision called a power of sale clause which upon default allows a trustee to sell the property in order to satisfy the underlying defaulted loan. When the property is sold on the courthouse steps, many times the lender buys the property for the amount owed on the home to that lender. Then the property becomes a REO (Real Estate Owned) property, or asset. The lender makes sure all legal requirements are met and the eviction process is completed if the property is not vacant. When the property hits the MLS (multiple listing service) listed with the lenders agent, it is ready to sell.
The big saving with the foreclosed home is the speed of closing is more predictable. Additionally, while many properties can be in rough shape and are marketed "as is" sales, the lender may cure some issues to make the home saleable or to meet buyers' lender requirements. It is important to note, many REOs of differing kinds may not meet lender requirements such as FHA and VA for inspection purposes.
Tony Barker and Premiere Home Realty handles and is experienced in bank owned (REO) properties, VA (Veterans Administration), HUD (Housing and Urban Development) properties that were FHA backed loans plus others.
How long does it take for a Short Sale?
The time this process takes is controlled by the home owners lender and how efficient they do the paperwork, the politcal climate, the lenders true motivation and your Realtor's organization and processes. It also relies on the homeowner to gather the documents and sign the forms plus allow the property to be shown every time. The property condition and neatness is also a factor in a successful sale. This time could take two to twelve months. If you are in a hurry to close, shortsales are not for you.
How Long Does it Take for a Foreclosure Purchase?
It can be similar in time to a private home purchase which is about three to eight weeks to close.
What about the process of closing
For shortsales, the trouble is the time it takes to get approval and then if they foreclose anyway.
The sale and closing itself is virtually the same.
For foreclosures, the issue is all the amendments and the disclosures the lender will have you sign. You will have to sign all of them to get the deal done. Most of them say you will not sue them for anything wrong with the house and you will hold them harmless.
What does this sale cost?
With Premiere Home Realty and Tony Barker, nothing. Tony Barker is paid from the commission as part of the sale as a buyers' agent. As always with Tony Barker, you can terminate at anytime for no cost.
How do I start?
If you are buying a home for yourself, we need to complete a buyers criteria
Click here to download a criteria sheet.
If you are buying houses for investment, we need to meet and build an investment strategy together. We will have a plan that we will implement and hold accountable to maximize your return on investment. Tony Barker realizes amd respects that your investment is in time and money.