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Taking Advantage Of Minnesota Short Sales and Foreclosures

The downturn in the local and national economy has put many homeowners in difficult positions. Home values are down, some “creative” mortgages have reached the time where interest rates and payments have increased, and many people have lost their jobs, making it impossible for them to keep up with their mortgage payments. Many homeowners, faced with owing more on their home than the home is worth or who are no longer able to make their payments, are forced to take desperate measures. Every community in the Twin Cities Metro Area has homes with owners in financial distress.

In some cases, these homeowners are trying to make a “short sale” of their home, with the mortgage holder accepting a lower price than the outstanding debt as payment in full. In other cases, lenders have simply foreclosed on the mortgage, evicting the former homeowner and taking over ownership of the home.

All of these situations are unfortunate, both for homeowners and the mortgage companies. For prospective homebuyers, though, foreclosed homes and short sales can be an opportunity to buy a home at a bargain price. In some cases, prices can be far below recent market values. On the downside, there can be many pitfalls and stumbling blocks connected with these homes If you’re considering purchasing a home in a short sale or one that has already been taken over by a mortgage holder through foreclosure, there are a number of issues to consider:

• Short Sales and Foreclosed Home Sales Can Take Extra Time – If you’re interested in buying one of these distressed properties, you should realize that the transaction might take longer than a normal real estate purchase. Mortgage holders can be very slow to make decisions and negotiations can be difficult. In the case of foreclosed property, the asking price may be higher than it should be, given the property’s condition. Getting to the right price can take time, and need delicate negotiation. In short sales, convincing lenders that it is in their best interest to accept an offer isn’t easy. REMAX Advantage Plus can help with these negotiations, and we have plenty of experience in expediting them.
• The Condition of These Homes May Not Be Ideal – All too often, the same conditions that have caused economic problems for homeowners also prevent them from keeping their homes maintained properly. In the case of foreclosed homes, additional problems may exist, due to the home being unoccupied for some time. It’s crucial that you get a thorough inspection of these homes and take all deficiencies into consideration. Be realistic about the cost of repairs and renovations. Your REMAX Advantage Plus professional agent will make sure you know about deficiencies in any short sale or foreclosed home.
• Financing Can Be an Issue – Not all lenders are interested in offering loans on these homes. You may face a difficult time obtaining financing, particularly if the home needs extensive repairs. REMAX Advantage Plus can help you find financing through their connections with lenders.
• Sweat Equity Opportunities – For homebuyers with the skills to do all or part of the work of rehabilitating a home with deficiencies, the market in short sales and foreclosed homes can be a treasure trove of possibilities. Many homeowners who have purchased distressed homes, then fixed them up on their own or with partial help, know that sweat equity is a powerful way to make the most of a home purchase. Contact REMAX Advantage Plus to discuss your interest in purchasing a short sale or foreclosed property. We can help you find a project home that fits your needs.

REMAX Advantage Plus – Minneapolis St. Paul Short Sale and Foreclosure Expert

At REMAX Advantage Plus, we stand ready to help you find and purchase short sale or a foreclosed home. We understand the negotiations required with lenders to expedite these sales and can help you understand the advantages and pitfalls of these transactions. We can also help you find financing for your purchase. Contact us today to discuss your plans. We’ll be happy to help.