Many clients are unclear on many of the issues that surround foreclosures in the present downturn in real estate. Here are the most common myths that need to be busted:
Myth #1: Foreclosure happens fast. The time frame to complete a foreclosure has increased significantly over the past few years. What used to take the lender 8 months to complete the process is now approximately 2 years.
Myth #2: Buyers of foreclosed homes can’t get clear title. The recent robosigning scandal has made title companies reluctant to insure these sales, however they are again becoming more willing to take this risk.
Myth #3: Buyers should wait for the shadow inventory to be released. This is unlikely to happen since the lenders will likely continue to add foreclosed properties to the market in a calculated manner to avoid flooding the market , which will result in a further decline in pricing.
Myth #4: If you are looking for a deal, you are looking for a foreclosure. The individual seller should not be overlooked. They are starting to realize that they must be prepared to reduce their price since they are competing with so many short sales and foreclosed homes at lower prices. Also, individual sellers are much more negotiable on repair issues. When dealing with a bank, you are buying the home in “as is” condition.
The Law Offices of William J. Reinhardt, Jr. is available to assist with the purchase or sale of real estate. Call 718-377-8880 or e-mail firstname.lastname@example.org to arrange for a free consultation.