Hello all, Welcome again... Here goes blog #2! It's the big showdown. . . REO vs Short Sale and my opinion on them. . .

Ok, let's get a LITTLE background together so there is not any confusion *they still might be, so I apologize ahead of time for that!*
Ok, Now short sales, *if you haven't read my section on short sales* Let's go over the basics of a short sale:
• You pick up the property for less than even the current lien on it (example, Owners owe $120,000, you might get it for $100,000)
• The time frame is up in the air! the most recent acceptance I got for some clients of mine was almost a full 2 months!
• Depending on the listing agent for the short sale, it can be a smooth process of a Terrible feces storm; Some listings advertise needing lender approval, and have not even opened communications with the bank!!! for example, the listing agent and his clients just decide to do a short sale, without consulting the lender;' this is a problem! What if the owners aren't granted permission to short sale their house? Your offer was a complete waste of time. But if they have their stuff together, and start putting a file together it could work out a lot more stream lined
• The more liens on a property, the more steps you have to climb to reach that peak.
Whew, ok still with me?? let's go on and hit the highlights of a bank REO (Lender owed)
• REO Properties have already foreclosed, so they are just being held by the lender. No ridiculous waiting around for the loss mitigator to decide the fate of your fragile offer; Most REO property offers will get a response in 3 business days. MUCH better than an unknown response time.
• The REO has already nailed the lender right in the groin; They had to shell out all the money to foreclose on the house, and they have to get it up to speed *clean out all liens, and get it ready to transfer title* They won't make any money on it sitting on their books so they are motivated!
• Same with Short sales, REO properties are usually sold "as-is" without SPDS and a Clue Report, so your inspection becomes even more crucial.

Now a lot of people get the misconception that everything in this market needs to be an OBVIOUS home-run. . . Knocking 40,000 off the price! etc. Well a lot of these distressed sales are already priced VERY well. *not all of them* but the majority of them are given a very attractive price tag to get them moving. The bottom line?? If you are considering buying, NOW IS THE TIME! there are some serious home runs just waiting to get spanked out of the park. You might have to paint some walls and repair some drywall... maybe buy a fridge, but it's worth it! Now for the final knockout punch, which is better?
Well In my opinion, I find it is easier, and better to work with REO properties as opposed to Short Sales. The time frame is almost the best feature. . . Short sales can take 3 months or sometimes even longer to close. What if you have a strict time period to get into something? the short sales might not agree with your time frame. Lender owner REO's get an answer fast, and they are willing to negotiate. Either way, this is the time to get nuts! Ok, i think i'll stop it right around there, next blog I'll be sure to tell some good story about breach of fiduciary, or where someone dropped the ball on a deal. Thank you again all for reading this. . . AGAIN!!! give me feedback!!! Ask questions. . . I've said it once, and im sure i'll say it a bunch of times again:

THERE ARE NO STUPID QUESTIONS!!! It is only foolish to NOT ask questions. That's what im here for so let me have it. Ok, til next time, best wishes

Jason Caballero
Dan Schwartz Realty, Inc.
Mobile: (520)250-6369
Office: (602)274-8322
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