Jumping on the main highway of internet postings won’t bring you the short sales or foreclosures Philadelphia real estate investors are looking for. Short sales, unlike foreclosures, are voluntary and typically in move-in condition, with the home still occupied. Short sales are, in essence, a seller’s last-ditch effort to escape foreclosure and avoid a permanent blemish on their credit history. Off-market deals are the hidden treasures of this type of treasure hunt, as experienced investors know!
When it comes to foreclosures and short sales, there is always a lot of competition among purchasers who are tempted by the prospect for big profits. Experienced investors recognize that this is a numbers game, and that the more offers you make, the better your chances of winning are. They also understand that patience is a virtue, as deals might take months to complete. Continue reading to find out how to purchase a short sale or foreclosure in Philadelphia!
Philly Homes And Lots
To buy a short sale or foreclosure in Philadelphia, you can look on the MLS, but Philly Homes And Lots is the Philadelphia short sale and foreclosure expert. We’ve already built the road at Philly Homes And Lots to deliver these bargains to you, saving you time, effort, and money. Philly Homes And Lots has the inside scoop on the available inventory of off-market short sale and foreclosure homes thanks to our years of networking among real estate experts and other real estate investors in Philadelphia like you.
Expectations
When buying a short sale or foreclosure in Philadelphia, you must know exactly what to expect. When it comes to real estate transactions, no one likes surprises. Realistic expectations can aid in the development of your investing strategy, allowing you to plan for all conceivable situations of what can go wrong or right in advance.
Short Sale
Sellers that willingly want a short sale to solve their financial problems will solicit as many bids as feasible before approaching their lender and requesting participation in the process. When you bid on a short sale home, you’re competing against a large number of other bidders. The transaction isn’t assured in any way. Obtaining permission on a short sale requires a large number of paperwork and a significant amount of time. Working with an expert, such as those at Philly Homes And Lots, is critical to ensuring the best possible results. Short sale transactions in Philadelphia, unlike typical real estate, require third-party permission. Short sales deals must be negotiated in advance by all three parties. You, the buyer, the seller, and the lender are all parties to the agreement. The circumstances vary widely, and some may be resolved in a matter of weeks while others may take months or even years. There are various deadlines as the process proceeds, and you can count on your Philly Homes And Lots representative to meet them.
Foreclosure
When borrowers fail to satisfy their financial obligations on their mortgage loans, the lender’s last legal option is to foreclose on the property and sell it at auction. Because these foreclosed houses are likely to be in less-than-perfect shape, you should hire a professional inspector and do some research on how much the property would likely sell for at auction. To win, you must bid at the exact figure, as there will be a flurry of other bids arriving at the same time as yours. As an investor, you will most likely own the property for the remaining loan balance, resulting in immediate equity in the property. Understanding the auction rules is critical, as is contacting the auctioneer or trustee ahead of time to inquire about how much cash you need have on hand to establish your intent with a bid. Frequently, a portion of the winning bid must be made available. Keep in mind that lenders who auction off foreclosed houses do so in “as-is” condition. Before you fall in love with a property and enter an emotional bidding battle, do your homework and come up with a final top bid that your budget can support. Any repairs that are required to restore distressed properties should be included in your data. Wise investors also have funds set aside for time-consuming situations, which translates to holding charges.
Expertise
When buying a short sale or foreclosure in Philadelphia, you should always engage with a professional from Philly Homes And Lots. Make use of the pros at Philly Homes And Lots and knowledge to help you stand out from the crowd. When lenders are analyzing all of the documentation, Philly Homes And Lots knows what they want to see.
Why not get started today while you learn the ropes of exploiting short sales and foreclosures in Philadelphia to create equity in your real estate portfolio? To learn more, call Philly Homes And Lots at (215) 385-3055 immediately or send us a message.