But before you go House Hunting

Offering a larger-than-normal down payment is one way to bangkok condo for sale from owner make an impression. Distressed homes whose mortgages have gone through securitization can take even longer than other distressed homes to close. Fact or Fiction: Often, distressed homes’ mortgages have been sold to third parties through securitization. The investor has to approve any decisions the lender makes on whether or not to accept your offer. That third party, usually an investment manager, will have to approve any short sale deal.

Properties don’t need to be foreclosed yet to be considered distressed. Fact or Fiction: Banks will usually try to get more for a distressed home than a regular home, so they can recoup their losses. Despite positive economic indicators, and some experts claiming that the housing crisis might be over in early 2011, the volume of homes that were foreclosed on or soon-to-be foreclosed on hadn’t decreased much. Fact or Fiction: In 2011, a full third of homes on the market were distressed sales.

However, not all foreclosures are REOs. Fact or Fiction: Because of the housing crisis, larger homes are in less demand, and can offer the best deals of any distressed properties. Fact or Fiction: Since banks are so desperate to unload distressed homes, buyers don’t need to offer much of a down payment to purchase them. Larger homes are less popular post-housing crisis since they tend to be more expensive. Banks often receive cash offers from investors on distressed homes, so buyers need to show that they are serious. The increased supply of large homes on the market means they tend to be cheaper than they would have been before the crisis. Some foreclosed homes sell at public auctions, instead.

Fact or Fiction: There is no need to be pre-approved for a loan before negotiating a purchase of a distressed home, since the process takes so long. Lenders only want to deal with serious buyers when it comes to distressed homes. They don’t want to spend too much time entertaining offers from buyers whose financing doesn’t pan out. That means they will only entertain offers from buyers who have preapproval for a loan, or buyers who can pay in cash.