Madison WI Short Sales
Short sales and REOs are not real common in Madison WI but they do come on the market from time to time. In a Short Sale, the seller still owns the property but is trying to sell it for less than they might owe the bank on their mortgage. Because the bank is still involved in the sale, the sell must receive the bank’s permission to sell at a short sale price. This process typically takes longer to close than a traditional sale, but it may be worth the wait.
An REO, which stands for Real Estate Owned, is a sale wherein the bank has taken the property back from the seller and is now selling it outright to a potential buyer. This type of transaction also typically takes longer than a traditional sale, but again you may get a bargain if the bank is willing to sell the home for under market value.
If you are not in a huge hurry or if you are looking for a fixer-upper, short sales and REOs are worth checking into.
Short Sales Just Listed in Madison WI
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Some Things to Remember about Madison Short Sales
Keep in mind that Madison short sales are usually being sold in what is called “as is” condition and that offers typically are conditionally accepted upon approval of the sellers’ lender. Also be prepared for it to take 90 days or more for a short sale to get to closing as the process can often be protracted due to the many approvals and negotiations the seller has to make with the lender. It is also a good idea to make sure your lender understands that you are shopping for a Madison short sale. Most lenders will understand what that means with respect to timing issues and they can advise you regarding the best financing strategies you may wish to employ.
Madison REOs are a Different Kettle of Fish
A Madison REO, on the other hand is different than a short sale in that the bank has already taken possession of the property. REO stands for “real estate owned” and the property has typically already been subjected to a sheriff’s sale in which the bank was the highest bidder. Naturally, the bank is interested in recovering as much of the outstanding loan balance as they can so if the bids are too low, they will hang on to it.
Some Things to Remember about Madison REOs
Banks are not really in the business of selling Madison homes: they are in the money business. Their primary concern with respect to an REO is to get rid of the property while reducing their losses as much as possible. That being said, it is not very likely that the bank will want to fix defects in the property. That makes it doubly important for buyers of Madison REOs to understand the property’s current condition and what repairs may be necessary to make the home habitable. Madison WI is a wonderful place to live and for the qualified buyer, Madison short sales and REOs may be a great opportunity to explore. Working with an experienced buyers agent is highly recommended and working with an Accredited Buyer Representative is a good indication of experience.
Nelson & Associates will Help You Find the Short Sale or REO you Want
Working with a seasoned buyer agent and trained SFR can make searching for short sales and REOs a good experience. Nelson & Associates will work with you every step of the way to make your real estate experience fast, fair and hassle free. Contact us today and we’ll go to work for you right away.
And… if you are thinking about doing a short sale as a seller, Jon Nelson, our Broker, will work to help you navigate the process.