Looking for a Distressed Property In Westchester County, New York? Two Things You Need To Know

You can’t turn the television on without commentary about how it’s the end of the world in real estate.   Everyone is talking about prices coming down, down, down, down.  The market may have a ways to go, but a lot of investors are starting to think that it’s at or near the bottom, and coming out to buy distressed property.   With Fannie Mae and Freddie Mac also letting real estate investors come back  to the table and buy more properties, it’s key that distressed property is going to be a huge part of the recovery.  To make this really work for you, there are a two  things that you must know about the types of distressed property.

Buying REOS /Bank Owned Properties

Here in Westchester County, NY, REOS are simply property that the bank owns, has gone through the foreclosure and sheriff’s sale process.  A bank now holds the deed and they sell them through REO Listing agents.   The banks are extremely motivated to sell these properties, and with the different Bailouts that have been passed, REOs can be among the best deals in real estate right now.   A lot of investors are buying REO properties because the banks are very price motivated.

What you need to know when you’re dealing with an REO is mainly this: the Bank wants to close fast, and they don’t want to make repairs.   You’ll need to make sure your financing allows for some cosmetic issues with the property because there will often be minor interior and exterior repairs that you’ll have to make.

Short Sales/Quick Sales

Westchester County, NY also has a lot of short sales and quick sale properties.   Short sales are properties where the homeowner couldn’t keep up the house, and has to negotiate with the bank as an alternative to foreclosure .   The homeowner (maybe even you) wants to sell, but they owe too much.  They negotiate with their bank, and do it.  For a complete view of how this works, look at the short sale book I wrote on the sidebar.

Generally, these properties are in better condition than REOs, and generally, these properties can be good deals.  When yo make an offer on a short sale, make sure that you have time to wait because it does often take banks 3-4 weeks just to get back to you since they have to order an appraisal, and make sure that they are not making an foolish decision.   Buying properties this way is not difficult, but it is often a much slower process.

What you need to keep in mind in a market like this–particularly if you’re an investor–is that you can’t fall in love with a house if you’re going to try and make money on it.   Sure, if you are wanting to live somewhere it’s probably OK to pay a little extra.  But it’s not OK to pay extra for an investment, and you have to be willing to walk away from whatever house that you see and make an offer on another house.

I’m around to help and lend my real estate expertise to any situation here in Westchester County, NY.  Make sure you call me any time for whatever help you need.

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