Posted on April 7, 2017
As investors, we all are very clear about the terms Indianapolis foreclosures process, short sales and REOs in isolation, but there is a misconception that all are the same which can’t be denied. Without a clear knowledge of handling foreclosures, short sales or REO’s you could not only end up bankrupt but leading to many other complications as well. Before analyzing the profitability factor let us have a look at the description of all three of them.
To be succinct, the process of foreclosure initiates with the bank suing a borrower from which a lis pendens is entered into public record, while a short sale is a pay off where the lender agrees to receive less than the money to be paid and it may happen while the foreclosure process is in progression. On the other hand, Real estate owned home (REO) or bank owned means a property sold at auction after the legal Indianapolis foreclosures process.
At the public auction bid, when no one is willing to come forward to take up the property, the bank owns the property. When buying a distressed property, you would have received so many suggestions to go for REO homes, this is for the reason that the seller is already out of picture and it’s only the bank, the bank’s agent and the investor’s agent who is in play and who will be negotiating the transaction. Moreover, there are some REOs that can be acquired without any intermediaries (directly from the lender).
Compared to short sales, foreclosure prices for REOs can be better and profitable, is it so? Let us discuss about this. In general, there are two reasons for buyers to prefer short sale, one is attractive list price and another reason is that they consider that the seller is desperate. Nevertheless, neither of the said viewpoints is inevitably right. In view of the fact that not all short sale home is in foreclosure, not every seller is hopeless. Additionally, sellers over and over again set the listed price quixotically, in an anticipation that buyers will congregate to that particular listing.
Having said all that, you need to ponder on quite a few things when you are looking at a potential foreclosure, short sale or real estate owned home search. No matter the option you choose, wholesaledealslist equips you with details that you always wanted.Tags: Indianapolis foreclosures process, Real estate owned home, REO homes