Purchase Advice For A Newbie?
I have recently found a property that has been forclosed on (dont know why) and it had previously been listed in our local real estate magazine for about 4 months. The list price is 32900 but the FMV I feel considering it is in a upscale neighborhood to be in upwards of 60K. The other home have sold for 70+. Would this be a good short sale?
THank you
A few things.
If it is a foreclosure (REO), ie the bank now owns it, then there is no longer a mortgage note to short sale. You just make an offer on the property.
If it hasn't been foreclosed on, then it still probably would not qualify for a short sale if the FMV is $60K and they are only asking $32K, unless there is a tremendous amount of damage.
rajwarrior,
It is an REO. The house just needs a the usual cleaning, possibly a new roof and siding. It is a 2900 sqaure feet older victorian. I have poor credit, any advice on best way to get financing? I was thinking of doing an L/O if I can purchase, is this wise?
Thanks again
If the property is a REO, bank owned, a L/O is highly unlikely. Usually banks want all cash deals, or mortgage sales.
I am sorry, once I purchase the property, I was wanting to sell it with a L/O.
Using an L/O to sell it is good. You can increase your income by collecting option consideration which is not taxable to you until the option is exersized or abandoned. There is also a reasonable probability that the option period will pass without the option being exercised.