Distressed properties are simply any property whose owner has defaulted on the mortgage. These are usually sold as a short sale, which means that the price of the home is usually less than what the current owner owes the lender and the home must be sold before the lender forecloses on the property. When purchasing a distressed property in Massachusetts that is available for short sale, you are often dealing with the property owner, not the lending institution. If the home has gone into foreclosure, this means that is has already been repossessed by the lender and you would deal directly with them.
Distressed properties in Massachusetts that have been foreclosed on, are typically sold at auction or listed on the open market as an REO property. If you are looking into buying a distressed property in Massachusetts, you will want to consider the following tips before you begin your search.
Here are some tips for buying distressed properties in Massachusetts:
Shop strategically- distressed properties typically have problems and you should use this to your advantage when negotiating short sale with the homeowner.
Be prepared to make an offer- distressed properties in Massachusetts are in high demand and that means that you need to be ready to make an offer on a property before someone else buys it.
Know the Massachusetts’ foreclosure laws- this is especially important when buying a distressed property in Massachusetts that has been foreclosed on. This could add some hurdles that you weren’t prepared for.
Have patience- the process of buying a distressed property in Massachusetts can take a lot of time and patience. Be prepared for the final sale to take up to a month or more as most lending institutions aren’t in much of a hurry to close.
Be prepared for repairs- most distressed properties need major renovations or repairs to make them livable. You should be prepared for this and have an additional budget planned for the repairs.
Get a professional home inspection- you should always get a professional home inspection whenever you purchase a home, especially one that has been foreclosed on. Most distressed properties are sold “as-is” and a home inspection will give you the information you need about the condition of the home before you buy.
Choose SRA as your experienced distressed property real estate agent – the process for buying a distressed is very different than with buying a property the traditional way and at Sovereign Realty Advisors LLC, we understand this process and can make the sale much easier for you.
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