Bank-Owned & Short Sales
Short Sale Information
A “short sale” or “short pay” is when the seller owes more money on the home than what they can sell it for.
This is usually a pre-foreclosure situation. In lieu of going into foreclosure the seller asks their lender(s) to accept whatever they can receive for the sale of the home as payment in full.
This is a challenging sale/purchase and can frequently take many months to negotiate since it frequently involves negotiations with more than one lender, investors, and even mortgage insurance companies.
We are experienced in working with both buyers and sellers in these types of sales.
In Colorado this involves buying properties at auction from the Public Trustee. This is not for the novice buyer because, among other things, it requires that you be able to present good funds for the entire purchase price within hours of winning the auction. In order to accomplish this, you have to have cash or a line of credit that allows you to pay for the property immediately. Unlike buying properties from banks or in short sale, you do not always get an inspection period before the auction. You must do your due diligence prior to going to auction.
Usually, when buyers say they want to buy a foreclosure, they usually mean bank owned properties (those that have been taken back by the lender). These negotiations can occur fairly quickly, typically within 45 days of contract, and you can use standard financing.
It is important to work with a Realtor because not all bank owned properties are “deals”, and they frequently are in very rough condition. A good Realtor can help protect your interests.
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