Considerations in Buying Bank Owned Properties or Short Sales

Buyers for real estate today all are looking for the same thing, a great deal! We hear over and over, "I want a bargain"! Many buyers even limit their search for real estate to only bank owned properties or short sale listings.

REO, stands for Real Estate Owned and refers to a property that is owned by the bank, who has taken the property back through the foreclosure process.

A short sale is a situation where the Seller still owns the property, but they cannot sell the property for what is owed against it in order to pay off the mortgage(s) and closing costs.

There are pros and cons to purchasing REO and Short Sale properties. They often sell below market price, however, in the case of REO's (bank owned properties) there may be little information on the property and the Bank is not required to sign Seller disclosures.

Purchasers need to keep in mind when dealing with REO properties, they are negotiating with a Bank. Banks are totally non-emotional. They are only interested in the "bottom line". Due to the large number of REO properties, banks have their own infa-structure in place to negotiate and accept purchase offers. Lenders are motivated to move these propeties "off their books". Put your best foot forward early. You may be competing with several offers and the bank is going to accept the offer that is the best price with the least amount of hassles and has the highest % of closing. Do not expect the Bank to make repairs or make concessions. You may get a bargain price, but the property may need work.

Short Sales properties may also have a lot of deferred maintenance. The Sellers are having trouble making their mortgage payments, so they are probably not able to continue to maintain the property.

The Short Sale process can be frustrating for buyers. Unlike the REO process, most banks do not have a systems in place to deal with the large amount of short sale properties. Lenders who hold the mortgages in their own portfolio may be easier to deal with as they have the authority to make decisions more quickly. Lenders who have sold the mortgages may need the approval of the investors before accepting an offer.

Patience is key in working with short sales. It may take months before your offer is accepted, so all parties need to set realistic expectations and be prepared. There is no guarantee that your offer will be accepted even after months of waiting for an answer. It is not uncommon to have a Lender reject the offer without a reason.

Short sales propertis that have more than one loan against the property present additional challenges with a purchase. They generally require approval from more than one lender. In most cases the offer may fall "short" of paying off the first mortgage and nothing at all for the second mortgage holder.

An offer to purchase a short sale property should include an addendum that allows the buyer to withdraw from the short sale contract without penalty if the Seller is unable to verify Lender approval by a certain date. Buyers should also be aware that until they receive Lenders approval in writing, the Lenders will be reviewing multiple offers.

One slight advantage on a short sale is that the purchaser may be able to get more detailed information on the property if the Seller is still living in the house.

Bargains abound in today's market, but there is a saying: "buyers beware" and be prepared. Make sure your Realtor is knowledgable in the REO and Short Sale process. Read and understand the contract and addendums that may be returned from the Lender. The "devil's in the details" and many times Lenders add small details that may be costly to the Purchaser if they overlook or miss reading or clearly understanding the consequences of a counteroffer.

Good luck in taking advantage of today's real estate bargains and use a company that can be trusted.

What is Your Dream?

“I have a dream", one of the most famous statements in our past century, spoken by the man we honor today, Martin Luther King. I have a dream, do you? What is your dream?
What do you imagine? Imagination is a gift that we all possess...dreaming of our future is so powerful...You have all heard, "be careful what you wish for, you might get it". What you "think", what you "dream", what you "envision" you will get.

Remember when we where kids and anything was possible? What has happened to those dreams? Do you remember the feeling of euphoria visualizing and feeling the freedom of our dreams? Somewhere along the way we stop dreaming and start doing…and that is when our dreams stop because "life" gets in the way. That is when our lives start to lose purpose….that is when we stop growing. Those dreams we had as kids were like a magnet which pulled us to what we wanted in life…they made us excited to go for it everyday.

I remember in my first job interview with CENTURY 21 of the Mid Atlantic States in 1988, the President asked me, "what do you want to be when you grow up?" How would you answer that question? When was the last time you truly thought about what you want to be “when you grow up”? We are all still growing into who you are becoming. It does not have to stop…we can breakaway and get off the hamster wheel anytime…start moving forward again like when we where kids. We just have to take time to dream, believe….breakaway from the pack and go for it…don’t blend in…be different.

It is uncomfortable at first when you step outside of your comfort zone and get off the hamster wheel where it is safe, but if you have courage there is still a lot more you can accomplish in this life. What is your purpose? What is your dream for yourself, your family? Are you striving everyday to "SEE" your future? Dream a little...it's fun!

This is an historic week. I sincerely hope we will all embrace this change and honor it. Our future President had a dream to become President of the United States of America. Martin Luther King had a dream for America. Just look at what their dreams became... their accomplishments and legacy. They accomplished their purpose by believing in their dreams and working hard every day to strive towards their goals.

President Reagan said in his first inaugural address, "We are too great a country for small dreams..." Dream big...have courage...be brave...and believe in your dreams. Be fearless.

If you need a little inspiration to break free from the hamster wheel of life, check out this video…don’t let fear stop you: Wing Suit Base Jumping

Go for it and use this historic week to start to dream, to renew your dreams. Start today to make 2009 the best year ever!

I have a dream...to provide the environment for success for each person who chooses to associate with our company;
I have a dream...to have a real estate company filled with action oriented, customer service driven, professionals;
I have a dream...to have a real estate compamy where everyone works together towards a common purpose of providing the customers unparalleled knowledge and professionalism
I have a dream...to help people achieve their potential;
I have a dream...of financial security;
I have a dream...of giving back to the community and it's underpriviledged;
I have a dream...of having fun each day;
I have a dream...of achieving my full potential;
I have a dream...CENTURY 21 Mirage is one of the most successful companies throughout the Coachella Valley;
I have a dream...of feeling inspired and thankful each day for my imagination!
I have a dream...of cruising on my boat with blue skies filled with a bright beautiful sun...
I have a dream...of laughing endlessly with friends, family and all those who have chosen to be happy and fulfilled by achieving their potential;
I have a dream...

Go out and start dreaming...making your dream a reality!

Act Now! It's a Buyers Real Estate Market!

There has never been a better time to buy real estate than now! In fact, while listening to Rush Limbaugh on "ABC Talk Radio" it was surprising to hear him say to all the naysayers out there that this is the best real estate market since 1987! And he's right!

Interest rates are at an all time low (5 1/2%) and there is an abundance of homes out there. Whether you're looking to buy a condo on a golf course in Palm Desert, a home in the famous City of Rancho Mirage home of our beloved President Ford, or one of the hottest architectural styles making a comeback since the Rat Pack roamed the highways of Palm Springs, Mid-Century Modern, it's a hot time to buy! Supply is out there like never before and demand is picking up, which means sales are up and if you are sitting on the sidelines, waiting for some unknown reason, you're going to miss a great opportunity! Get in the game and start negotiating your best deal!

Sellers are motivated now more than ever. Make sure you are working with a knowledgable Realtor, who has experience at negotiating. If you have equity in your home, consider taking some of it and leveraging it to acquire a great buy today. Don't cry over the equity "you could have gotten a few years ago", take the equity now and use it to take advantage of a great BUY in today's market. Yes, you would have gotten a higher sales price 3-4 years ago, but you would have also had to PAY a higher sales price on the new purchase.

Our International Neighbors understand that real estate is on sale throughout the United States. They are actively in the market and taking advantage of areas they have visited for years as vacation renters, such as Southern California, specifically the desert cities in the Coachella Valley, but also vacation markets in Florida and other recreational cities.

Investors from LA and San Diego are discovering the untapped resources and future equity of real estate from Palm Springs to Yucca Valley, recently voted as 1 of the Top 10 Best Places to Live by "Money" Magazine. Discover what others are finding out.

"You can sit back and watch or you can become an active player in this fantastic Buyer's market" says, owner, Debra Chandler. "Just make sure you are working with the Number 1 Brand in America and the fastest growing real estate company in the Coachella Valley, CENTURY 21 Mirage" she says with her infectious smile.

Visit our website at www.century21mirage.com or come see us at our 5 locations in Palm Springs, Palm Desert, Desert Hot Springs, Yucca Valley & 29 Palms. We're your neighborhood professionals, you know us, so call at 877-221-4721. Discover your next real estate purchase and let's get busy taking advantage of this great market.