|
Short Sale/Subject to Bank Approval: A Short Sale is when the homeowner who is facing foreclosure sells his home for less than the value of his loan. The homeowner can’t sell anything, with out the approval of his lender. This process really depends on the foreclosure date, and how much money the lender is losing. The short sale approval process can take from 1 week to 8 weeks. The lender may decide at the end of this time NOT to accept the offer for less than the value of the loan.
Bank/Lender Owned: When you see Lender Owned in the MLS. This means the bank has already foreclosed on the property. The property is now owned by the bank. The bank is not in the business of property management. They usually price their property at or just below comps. Most banks provide a response in 3 to 5 day, depending on the bank.
‘As-is’: Short sale or Bank Owned homes are often listed with the words "as is" because the sellers don't want to be inconvenienced with repairs or renovations, and/or can't afford to make repairs. Buyers of "as is" houses can often obtain bargain purchase prices, but they should always make their purchase offer contingent on approval of a professional inspection report. In Colorado the Inspection Deadline in the ‘Contract to Buy & Sell Real Estate’ gives buyers the opportunity to withdraw from a contract if the Inspection reveals unsatisfactory conditions.
Duplex vs Attached home: With attached homes, usually only 1 side is owned (if both sides are owned there are 2 titles). With a duplex, the structure is considered 1 whole unit with 1 title but there are multiple separate living quarters. It is important to know the legal description of the home you are buying, as the type of home will affect your mortgage requirements.
|
