What is a foreclosure home? What is a Bank Repo? What is a short sale or compromise home? Please let me explain. Many of you are wanting to buy a foreclosure home because there is a “Perceived” value. Sometimes they are a great deal. More often than not they are just a beat up home.

A foreclosure home is a home that a bank or the government owns. Typically banks such as Countrywide, Wells Fargo, Citimortgage, Wachovia and the like have taken over the ownership of these homes. Bank repo and foreclosure homes are the same. A government foreclosure is known as a FHA/HUD or VA repo. These were government sponsored homes that people got foreclosed on. All of these agencies have companies such as REMAX, Westfall & Assoc. and Muldoon & Assoc. to sell homes in Colorado Springs. They are listed thru the Pikes Peak MLS system. There are various websites that also show these homes. To owner occupants the process is the same as buying a regular home. For investors, you must bid at the end of a 10-day period.

A short sale or compromise sale is a home that’s being sold that is late on payments. The banks do not own the property. The homeowner is behind on payments and is “hoping” the bank will allow the home to be sold for less than is owed. Buying these homes is very hard and time consuming. It can take 6-8 weeks to get answers from the bank. Usually these homes are in better condition than a foreclosed home, but the wait is a killer and usually disappointing.

Stay turned for next week and we will talk about value and condition. If you would like more urgent information, contact me at theteam@maecker.com or my website www.maecker.com.  

Thanks,
Brian