Things To Consider - Is Buying A Distressed Property Right For You?

Foreclosed home          Logos  Certified Distressed Property Expert

 

There are many misconceptions and unanswered questions for home buyers in today’s market when it comes to Short Sale and Foreclosed homes.   Although the Dallas area market offers very vew homes available that are in distress, there are some.  As an Accredited Short Sale and Foreclosure and Certified Distressed Property Expert resource professional, I can assist you in the process of determining if a distressed property is a purchase for you to consider.  Foreclosure is a process, with buying opportunities at each stage.

While distressed sales are a sad fact of the real estate market, no one wants to see a homeowner lose their home.  And although these properties present unique opportunities for buyers, you need to determine whether you are a candidate for such a purchase.  It is important to learn all you can about distressed properties, and here are some points and questions to consider:

Alternative Buying Options - Is a distressed property right for you?

STAGE 1. PRE-FORECLOSURE –

     A period of time that begins with the initial mortgage default and ends when

     the distressed property is sold.

STAGE 2. FORECLOSURE SALE –

     When the property is auctioned to the highest bidder, someone who also

     meets the terms of the sale.

STAGE 3. REO (REAL ESTATE OWNED) –

     If a foreclosure sale is not successful, property ownership is transferred to

     the lender. 

WHAT IS A SHORT SALE?

This is a situation in which a seller owes more on their loan than a sale of the property will produce, and they are unable or unwilling to make up the difference at closing. The seller may or may not be in pre-foreclosure. Banks may consider a short sale to a new buyer to reduce their losses.

QUESTIONS TO ASK YOURSELF:

As your buyer’s representative I can give you specific guidance based on your situation and the type of distressed property you want to purchase.  But for starters, consider these questions:

1)  Are you flexible on timing? Can you make a quick decision and/or accommodate months of possible delays?

2)  Is your purchase limited by any contingencies, such as needing to sell your current home first?

3)  Have you already secured financing?

4)  Do you have resources to repair and rehab the property, if needed?

5)  If you are buying the property for investment purposes, what is your action plan? Do you intend to rent or resell? Or perhaps inhabit the property until market conditions improve?

NEXT STEPS:

As your buyer’s representative I can assist you further in answering these and other questions which will help you determine whether this path to homeownership is right for you.

The Accredited Buyer’s Representative (ABR®) designation is awarded by the Real Estate Buyer’s Agent Council (REBAC), a subsidiary of the National Association of REALTORS® (NAR). To learn more about REBAC and access various homebuyer resources, please visit www.REBAC.net.

 

More questions?  Contact your Dallas Realtor Lisa Von Domek!

 

 

www.LisaSellsTexas.com

 

Lisa Von Domek

 

Lisa Von Domek
BROKER/ASSOCIATE/REALTOR, 
ABR, AHWD, ALHS, ASP, BPOR, CAPS, CDPE, CGP,
CLHMS, CMS, CRS, CSP, e-PRO, GREEN, GRI, MRP, PS, QSC, SFR, SRES, TAHS, TRC
Lisa Von Domek & Associates, LLC / Real Living Real Estate Group 
Phone:      972-849-1300 
Email:        Lisa@LisaVon.com      
Website:   www.LisaVon.com

Multi-Million Dollar Consultant

Texas Licensed Real Estate Broker

 Accredited Buyers RepresentativeAccredited Staging ProfessionalAt Home With DiversityCertified Residential Specialist  Certified Aging-in-Place SpecialistGraduate Realtor Institute      Certified Distressed Property Expert  e-ProSenior Real Estate Specialist      GREEN Realtor             Military Relocation ProfessionalShort Sale and Foreclosure CertifiedTexas Affordable HousingTransnational Referral Certified       Institute for Luxury Marketing        Certified Luxury Home Marketing Specialist  ALHS  AR Top Contributor     Wounded Warrior Project

 

 

Addison TX Real Estate  Allen TX Real Estate  Argyle TX Real Estate  Cedar Hill TX Real Estate

Dallas TX Real Estate  DeSoto TX Real Estate  Duncanville TX Real Estate  Grand Prairie TX Real Estate Midlothian TX Real Estate Plano TX Real Estate  Red Oak TX Real Estate  Waxahachie TX Real Estate

 

 

Lisa

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Comment balloon 22 commentsLisa Von Domek • October 01 2018 02:22PM

Comments

There is a lot more to consider when buying
This type of property

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 1 year ago

Very informative. Thanks for sharing Lisa Von Domek 

Posted by Denise Ho, Real Estate Agent (Real Estate eBroker Services) about 1 year ago

So true William Feela and with so few available in my market, there are not many agents that know all of the in's and out's in dealing with this specialized sale.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

You are most welcome Denise Ho I am so pleased that you found it informative!

 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

Hi Lisa

We don't have very many distressed properties in our area but there are some, and anyone who wishes to buy one needs to understand the issues as you point out and work with someone who know how to navigate the process.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) about 1 year ago

Lisa good info.  Distressed properties can be challenging in obtaining financing.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 1 year ago

There is much to consider and many hidden surprises. This is a great post to explain the process and terms that are used along the way.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 1 year ago

Morning Lisa.

You sure do wear a lot of different hats.  I bet your closet is full of them..

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) about 1 year ago

This is important information to share with prospective home buyers.

Posted by Roy Kelley (Realty Group Referrals) about 1 year ago

Lisa, 

It sounds like buyers interested in distressed properties in the Dallas area  should contact you for assistance.   Successfully navigating a transaction with a distressed property requires additional expertise that most agents, to include myself, do not have.    

Best wishes

Posted by Sondra Meyer:, See It. Experience It. Live It. (Star View Real Estate ) about 1 year ago

Jeff Dowler, CRS distressed properties are few and far between in my market...and this will (hopefully) remain.  But they do need a professional at the helm when negotiating a sale!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

Yes, they certainly can George Souto the loan process can get tricky on these.

 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

Thank you Debbie Reynolds we all remember the plethora of distressed properties years ago and hope they don't return...it would be wonderful to never have to teach these terms to anyone!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

You know me well James Dray ...Always at the ready! 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

Thank you Roy Kelley I agree, of course, information is key to successful distressed transactions.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

Thank you Sondra Meyer: this is a specialized niche and I so appreciate your comment.

 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

Hello Lisa - this is a good question to ask prospective buyers as part of any initial interviewing process. 

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 about 1 year ago

Oh, not only does it have to be right for the buyer, those buyers also need the right Realtor®, Lisa! Having someone who is CDPE certified is HUGE when representing a buyer. I had more issues with the buyers agents not informing their buyers with updates and eventually, the buyers would get tired of waiting and not hearing anything. The CDPE agents know how critical communication is, making the listing agents job and the success of the sale a LOT more positive!

Like you, right now, we have so few distressed properties but, now is the time to start gearing up and refresh our certifications, etc. 

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) about 1 year ago

Good morning Lisa.  Great information for those thinking that they are ready to go through the process and work of purchasing distressed properties.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) about 1 year ago

Thank you Gabe Sanders it is a process to purchase a distressed property!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 1 year ago

Lisa I missed this great post of yours but thanks to Gabe Sanders  reblog I am here and indeed it is not for everyone to take this type of sale on, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) about 1 year ago

We have closed hundreds of short sales...no not the right choice for everyone !

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) about 1 year ago

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