Short Sale, Foreclosure or Corporate Relo--Which is Easiest?

This week I worked with buyers who offered on a short sale, a corporate relocation, a HUD foreclosure, and a regular foreclosure, and I closed on a foreclosure sale. Nothing like excitement for the first week of school...

All four buyers had unique and interesting challenges. The common threads are patience for the buyer (and buyer's agent!) and lots of disclosures that require you (as a buyer) to sign your rights away.

If you see "Corporate" on the disclosures category in MLS, that likely means the home you're buying is a corporate relocation. Sometimes agents list foreclosures under the "Corporate" heading, but it should also disclose "Foreclosure" if it is a foreclosure.

The Corporate listing had all inspections completed and a 35 page Addenda. Having the inspections done up front is pretty nice, but you must stipulate the amount of money the seller will pay for termite treatments or repairs before the buyer has independent inspections. We're still waiting for a response. The first counter was handled pretty quickly. Wish us luck!

The foreclosure was actually the easiest this week. The agent was easy to work with and it was a quick acceptance by computer. The verbiage in the addenda was harsh, but you can't delete or change anything, so be prepared to take the leap of faith if you choose to buy a bank foreclosure. Any potential issues should be resolved during the title search, and the seller does offer title insurance. The commission was substantially reduced to give the asset manager a cut, so that's no fun.

The short sale is anything but short. We are still waiting. We got acknowledgement that the offer was received, but not a peep otherwise. At least the recent short sale addenda gives you a deadline so buyers don't have to hang in limbo forever. We are hoping it works out.

The HUD foreclosure was a computerized bid and the upside is that your buyer finds out the morning after the bid deadline. That is a relief because you know how long you have to wait. The forms were not as easy. Everything must be signed in blue ink and a cashiers check for the earnest money is required up front. The process is tedious, but the property is pre-inspected and you get all the reports prior to the bid. They have very specific instructions, but you don't necessarily get all of them up front. I felt sorry for the buyer because we had to go through several gyrations to get it right, according to HUD's standards.

I hope next week will bring some positive responses so we can get into our inspections. If you're thinking about buying to take advantage of the $8K tax credit, don't wait to the last minute. The closing process takes a while. Our offers this week had closing dates on or before October 10th, so keep that in mind for perspective. November 30th will be here before we know it. 

If you know someone who need a great agent to help them buy or sell a home, I'm never too busy for your referrals! 

Enjoy the weekend!