Bonnie Blue

The REO, Bank Owned and Short Sale Specialist!

Everyone wants a good deal!  The best way to buy real estate at a discounted price in today’s market is to purchase an REO (bank foreclosure or bank owned property) or a Short Sale!

What is a Bank owned property?

What does that mean in plain English?  A bank owned property is one that has already been foreclosed on and the bank is now the owner.  Typically, the bank will list the property below market value to sell it quickly. Which equates to a real savings for the buyer.  Banks normally want to close these sales within 30 days.  There can be a great deal of competition with bank owned properties so it behooves you to make the highest possible offer.  Time is of the essence so thinking too long before you make a decision can result in someone else buying the property out from under you.  The early bird gets the worm!

What is a Short Sale?

A “Short Sale” is a sale where the lender is willing to accept less than what is owed on the property.  The bank pays all the costs of sale for the seller and settles for a smaller payoff.  A short sale is usually a very good buy; however, it may take 120 days or longer to close the escrow.  Short sales are usually priced below market value to attract buyers.  Once in a short sale purchase the bank will have the property appraised and they could counter back at a higher price if they think the house is worth more.  They may reject your offer in the beginning but you have the option to counter offer at a higher purchase price.

What are the differences?

One main difference between a bank owned properties and  short sale properties are disclosures.  California law requires that a seller disclosure all know facts and conditions about the property to the buyer. Although, property taken back in foreclosure proceedings are exempt from that requirement. In a short sale scenario the seller must fill out all the necessary disclosures and deliver them to the buyer.  There is some protection and recourse with a short sale that there isn’t with a bank owned property.  So, “Buyer Beware”!  When purchasing either type of property, “Have a home Inspection” by a qualified profession!

I would love to help you find a cabin in Big Bear.  I have worked with bank owned and short sale properties for many years and I understand the process.  You need an experienced agent to help you through this process.  If you would like to discuss the possibility of purchasing these types of Big Bear property just give me a call or email me.  I look forward to assisting you in buying your dream cabin in the mountains.