Short Sale help?!! Im buying a bank owned property

Pennington, NJ · Member since 2018 · 28 posts · 6 votes

Im looking at a property that has been listed for 220 days. I just made an offer and found out it was bank owned. They also said it will go into short sale soon.

Ive never bought a bank owned property before. Should I try to buy pre short sale or wait for it to go into short sale?

Now that I know its bank owned and will do into short sale soon, are there specific strategies I should use to get this property at lower cost?

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y
Short sales are not bank owned.
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Salvatore Trapani
Realtor · Bayside, NY · Member since 2014 · 19 posts · 9 votes
6y
@Jerry Brecko to expand a little on what Russell said;
If it's a short sale, the current homeowner still has possession/ownership in the property but you would still need bank approval on a purchase price. Your offer and contract would be between yourself and the homeowner contingent on a short sale approval from the bank.
A benefit with dealing with a short sale is the ability to view the interior prior to presenting an offer, purchasing using conventional financing options and making arrangements with the current occupant to make sure they vacate appropriately.
If it's bank owned, then it would not be marketed as a short sale and therefore your offer and contract would be direct with the bank.
Cons with bank-owned may include the inability for interior inspections, needing to self-finance or using hard money to close within 30 days and the unknown of dealing with squatters.
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