Upcoming Foreclosures - Is It faster to close on bank owned properties or short sales?

Is It faster to close on bank owned properties or short sales?

Any tips or advice for a buyer?

Public Comments

Get a buyer’s agent because banks are not keen on negotiations and if you work through their representative agent you aren’t going to get far. If anything, buying from a bank or when a bank has to approve your offer is slower and more difficult than a traditional sale. Banks have so much else to do that it can take then days or weeks to review offers.
Short sales require VERY lengthy paperwork, and take approx 30-90 days for the bank to even respond regarding your offer. Typically, multiple offers are sent to the bank and many buyers back out in the process since it takes so long. Thus, there's nothing short about a short sale. In comparison,when purchasing an already bank owned property, banks usually get back to you regarding your offer within 3-5 days, and you can close within 30! clean title, so the lengthiest process is usually waiting for you to get your mortgage settled, and all the town requirements(c of o, termite inspections, etc). I'm a realtor in NJ, so i'm only speaking of what I know from this state. Hope that helps!
It's definitely easier and faster to close on a bank-owned property than on a short-sale. The banks already know where they stand as far as expenses and holding costs on a bank-owned property. Also, bank-owned properties don't have issues with other lien holders on the property, while a short sale may have a 2nd (and sometimes even a 3rd!) mortgage company that would also have to approve the deal. Always check the days these homes have been on the market. If they are over 120 days, the banks will be even more willing to deal on the price. As a buyer it would cost you nothing to have a Realtor represent you and help negotiate the deal. Find one who has experience with working with bank-owned properties to help make the process easier for you. Good luck!
I HAD A MADE AN OFFER TWO MONTHS AGO ON A SHORT SALE AND STILL HOPING. (my fingers are still cross)