A short sale is when the owner owes more on the property than it's worth. No matter what the condition of the property, it's eligible for a short sale. The owner will get no proceeds from a short sale.
What does that mean to a buyer - the seller wants to sell the home rather than have it go into foreclosure. It's a great opportunity to get a home at a reduced price. Don't be afraid to make an offer on a short sale because you can't offend the homeowner, they just want to sell the property, in some cases, before they lose it. Also, on a short sale, if you are in a rush to purchase, this is not the type of sale you want to buy. It could take some time before the offer is approved. You need an agent that knows how to put the offer package together to send to the lender. I am experienced in handling short sales so if you need help buying a property or selling your home, give me a call.
FORECLOSURES (REO) PROPERTIES
These are properties that are already owned by the bank. They are excellent properties to purchase as you can usually get a good deal. They are vacant and some are in move-in condition. If they need work, finance the cost of repairs in with your loan. Whatever the case, they are worth a look.