Buying Distressed Homes in Lake Havasu

Are you a good candidate to buy a distressed property in Lake Havasu? Here is a brief overview of the process and a checklist to help you decide if one of these distressed property categories are right for you. Use this information to help your Realtor find the right home for you.


Pre-Foreclosure/Short Sale

These properties are typically occupied and may have a history that shows they have been on the market for a while. In any case the homeowner is likely past due on the mortgage and the short sale might be an effort for them to sell before foreclosure. In order to sell “short” the seller must show a hardship to pay. Part of selling “short” means that the seller must get the bank’s approval to sell for less than the current mortgage amount.

Are you a good fit to purchase a short sale?

 Most important is patience. The process can take up to 6 months and we have seen them take as long as a year to close.

 Are you okay giving up your power and your Realtor’s power in presenting your offer?

 Are you willing to go 30 days at a time with no communication from the bank and stay comfortable that you are not forgotten?

 Do you have the resources to make repairs if needed? These are sold “as is”

Auction

Most often you are on your own with this process. This is a courthouse steps process although the sale can take place anywhere. States are different so do your research. If you find the home you want to place a bid for, drive by it and confirm what you are willing to bid. You show up at the designated time and date with a cashier’s check for the required amount for that auction.

 Do you have the required cash to bid successfully?

 Are you knowledgeable about the market prices in the area?

 Do you have the resources to make repairs if needed? You are buying “as is” and will not know the condition until after the purchase.

Bank Owned

If the auction is not successful the property ownership is transferred to a lender. These are the properties that will be listed in the local MLS and with a Real Estate office. For the most part these work similar to any other property you might purchase. You make an offer, the bank must accept your offer, and you use a title company to ensure clear title. The 2 major differences between these and a homeowner owned property is 1. The bank writes additional terms that are required to purchase this property. 2. You may be bidding against multiple bidders so you have to give it your best shot.

 Cash is king here but it is possible to finance.

 You must show all of your funds to purchase. Have a bank statement ready and if you are getting a loan, pre-qualification is necessary.

 Often you are required to pre-qualify with a specific lender.

 Be willing to accept the banks terms which may include a penalty if you do not close on time.

 Do you have the resources to make repairs if needed? You are buying “as is”.

 Can you stay the course if you are not the winning bid until you find a home that works for you?

We hope that these tips are helpful to you. Choose a Realtor who can help with all additional questions you might have.

If you do not have a Realtor think Brenda and Willie Gonzalez, The G Force of Havasu for your next purchase. We have the training, commitment and knowledge to help you negotiate your best deal! Visit our website now http://www.yourlakehavasuhome.com/

The G-Force of Havasu, Brenda and Willie Gonzalez are here for all your Real Estate Needs. Put the Power of The G Force to work for you today! Call Now! Office 928-505-5478 Brenda Cell 928-846-6044 Willie Cell 928-846-6046. We are Short Sale Foreclosure Certified and trained to help you buy distressed property in Lake Havasu!