Today marks our first edition of our Mailbag segment. Our first question comes from Aaron in Plymouth. Aaron is interested in purchasing a foreclosed or short sale listing and was wondering how the buying process compares to a listing owned by a homeowner. Well Aaron this is a great question. In fact, my findings have been so informative and interesting that I have decided to use our ambiguous 5th week segment to turn our first Mailbag into a two part post. Today, part one will focus on the process of buying a listing in distress, and next week we will look at some of the unforeseen obstacles.
Odds are that you or someone you know has mulled over the option of putting an offer on a foreclosure/short sale while searching for a new residence. However, there can be a lot of questions and uncertainty when entering this kind of bid. Luckily, Roger Fazendin REALTORS® is well equipped to ensure confidence in this process. RFR has 4 different agents who are certified in distressed listings. Judi Roberts and Colin Simpson have the designation of CDPE (Certified Distressed Property Expert) while Sandy Steiner and Andy Fazendin have earned their SFR (Short Sale & Foreclosure Resource) certificates.
Judi Roberts explains what kind of knowledge she maintains because of her CDPE certification, “I went through classes in which we meticulously went over: bank procedures, negotiating techniques, specific paperwork, and pricing and listing process.”
One of Aaron’s concerns was if the process was quicker on a foreclosure than a short sale as well as what an average waiting period looked like. Judi responds, “Short sales take longer. Also when there are two mortgages it is common the second won’t agree and it goes into foreclosure anyway. As far as the waiting period goes it usually takes at least 45 days on short sales and on foreclosures offers can be accepted in days or a few weeks. Fannie Mae owned properties have an exclusion of investors for a period of time, and HUD owned homes are the same. My experience varies based on different lenders. Also, certain banks respond quicker than others. Another aspect to keep in mind is that some listings will require city inspections. These properties can have a lot of damages, and it can take an extra 60 to 90 days to meet city requirements.”
Judi’s familiarity with distressed homes can help expedite the process. She states, “A loss mitigator at a bank may have up to 300 different files and it could take 45 days to get your file looked at. Timeliness and organization are extremely important throughout the process. If the documentation isn’t in order your file will go to the bottom again. I am specialized in efficiently qualifying sellers, certain listing procedures and I stress that close communication can help the process. I have found that having a relationship with banks can give me an advantage in the efficiency of the process.”
To determine whether your timetable is suitable for the process of a foreclosure or short sale, please contact one of our four professionals. We will further elaborate on Aaron’s question next week when we address some of the other variables you may encounter. Again we stress that each listing can have its own unique requirements and strongly recommend that it would be in your best interest to navigate these procedures with our professionals. Give them a call and we would love to assist you.