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Short Sales and Bank Owned Property
Now may be a great time to buy a home. Prices are down, interest rates are low and there is a tremendous selection of homes to choose from. When you add distressed properties into the equation, getting that "once in a lifetime" deal becomes a very real possibility.

When looking for distressed Boise real estate you should certainly consider exploring both bank owned properties and short sales.

With bank owned properties you are purchasing a property directly from the bank. Property owned by the bank is also commonly referred to as REO property or foreclosure property. In order to sell a property quickly lenders will often discount the property to between 80% and 90% of the property's fair market value. Be aware, however, that bank owned properties are typically sold as is. Therefore, when purchasing a bank owned property it is important to ensure that your purchase agreement includes terms that allow you to terminate the agreement if you are not satisfied with the results of a professional inspection. Bank owned properties can typically close after a standard twenty to thirty day escrow period.

Short Sales are entirely different. In a short sale the homeowner still owns the property and the seller's lender is agreeing to allow the seller to sell the property even though the proceeds from the sale will not be sufficient to pay off the seller's loan in full. The timeframe involved in completing a short sale is often quite lengthy with many short sales taking three months or longer. Sometimes substantially longer.

The short sale process begins with the seller and the listing agent preparing the short sale package. The short sale package typically includes the seller's bank records, tax returns, paycheck stubs, a hardship letter, a financial statement, an authorization letter, the purchase agreement and a HUD-1 closing statement indicating the amount of funds that the lender will receive. Once the short sale package has been delivered to the lender the file will be assigned to a loss mitigator in the lender's office.

It is important to be respectfully persistent with the bank. First to confirm that the short sale package has been received, and then to ensure that a loss mitigator has been assigned to the file. Once these steps have been completed, twice weekly calls to the bank should be made to check status and to push the process forward as much as possible.

In the Boise market the standard real estate purchase agreement language contains several risks for buyers and sellers that should be avoided.

One such risk is standard contract language that allows either the buyer or seller to terminate the agreement at any time prior to the seller's lender's acceptance of the short sale. Imagine waiting months for a short sale to be approved only to have the seller terminate the purchase agreement because they receive a higher offer at the last minute.

Another risk is that the standard contact language includes a loophole that allows the seller to accept multiple offers for the same property with no obligation to disclose the presence of multiple offers to the buyers. Imagine waiting patiently for months hoping that your short sale offer will be accepted by the bank when in fact you have very little chance because, unbeknownst to you, the lender is also in receipt of a higher offer.

Atova agents are specially trained to use custom contract language to address these risks and others. Choosing the right Boise real estate agent will help you get the perfect home at an exceptional price. Choosing the wrong agent will often result in frustration and failed transactions. Don't work with a salesperson. Work with a real estate professional. Work with an Atova agent.

Finally, you should be cautious when using "Bank Owned Property and Short Sale lists" provided online. Such information is often outdated and incomplete. Instead, we will provide you with bank owned and short sale information that is current and all inclusive. We gather and prepare the latest information right when you ask for it. Accept nothing less.

If you would like to receive a current and complete list of bank owned properties and short sales that match the criteria you are looking for please complete the form on this page. We will prepare the information for you and deliver it via email within twelve hours. We look forward to working with you!
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