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Short Sales & Foreclosures: Buying Homes in Peril



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By : Gary Ashton    99 or more times read
The economic climate of the past year or so has led to the proliferation of homes in distress, facing short sales and foreclosures; many of these homes have made it to market where buyers are hungry to snatch up deals. While many prospective home buyers are eager to lay claim to one of these possible bargains, the fact is that not all of these homes will be a bargain.

What is important to remember though, is that not all foreclosures or short sales are a good deal.

Properties that haven't yet progressed to the foreclosure stage are called short sales. Short sales are homes that are worth less than what is left owing on them and are subsequently sold for less than what is owed on their mortgage. A short sale can free a homeowner from their debts from the home, but can leave them still owing if their lenders won't negotiate a settlement on the funds owing. Short sale homes may have liens on them from more than just mortgages as well; sometimes they'll have debts connected to them based on unpaid utilities or taxes as well. Short sales can also take a long time to complete, so if you're in a hurry to buy a home they are likely not a good choice.

Foreclosures, in contrast, are bank owned properties which can be a faster and more straightforward purchase. There are a few dangers in purchasing a foreclosure; foreclosures are usually sold as-is and consequently there is no option to have any problems repaired before you take possession of the home. Many foreclosure homes are auctioned with no opportunity to even have the home inspected so it can be hard to have a very good idea what a given property is worth.

Due to the emotional investment that many homeowners have in their homes, foreclosure can result in some passionate retribution from owners who've been foreclosed on, resulting in full-scale vandalism. Some homeowners who've suffered foreclosure strip their homes of anything that might be able to fetch a few dollars or attempt to cause as much destruction as they can to the home before they vacate. Some homes are stripped of all appliances, cabinets, and copper pipes and wires, which can cost the new owners thousands of dollars to repair and replace.

The best way to avoid thousands of dollars of unexpected costs is to engage a realtor who has experience with short sales or foreclosures, whichever you're looking to buy into. An experienced agent on your side in this sort of endeavour is essential to make your investment progress smoothly and without any expensive pitfalls.
If you're interested in finding your very own sweet piece of Nashville real estate, visit NashvillesMLS.com to search for Nashville luxury homes.

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