Saturday, May 23, 2009

If you think there's nothing to buy out're right

Yesterday, I searched the mls for all "active" single family homes in North Hollywood under $300,000. I found 34 homes. Virtually every one, every single one, was a short sale, foreclosure or probate -- and they all had offers on them already.
The way it works is this: for a short sale, the property can't be listed as "pending" until the bank signs off on an offer. But before that happens, the seller has to sign off -- and the seller may have several acceptable offers that they've already sent to the bank. They may not actually look at other offers if they've already done that, even if the property is still listed as active. The bank may just be taking their sweet time -- it usually takes them two months or more to approve a short sale. To recap, even though the property is listed as active, it's really "pending."
For foreclosures, the process is similar but faster. And recall that if the property is listed by a mega-lister foreclosure agent, they've been putting feelers out to investors -- and maybe even getting offers -- before the property even comes on the market.

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