Buying a Colorado Springs Foreclosure or Bank Owned Home
We get a lot of calls from people looking to buy a foreclosure home in Colorado Springs. Most of these folks are wanting to buy a home in foreclosure because they see it as an opportunity to buy a home for sale in Colorado Springs for a great deal.
Unfortunately, most people do not really know and understand what a foreclosure home really is. In fact, “Almost 20 percent of men aged 18-34 and 20 percent of single people don’t even know what a foreclosure is, according to Trulia.com.”
First, there is a difference between a foreclosure home and a bank owned home.
A foreclosure home is a home that is technically still owned by the home owner, but that homeowner has defaulted on their mortgage payments. The mortgage company (or bank) has started the foreclosure process and there is a date set (usually about 6-9 months from the 1st defaulted payment) for the home to sell at the foreclosure auction. The homeowner has the option of catching up on their mortgage, selling the home or letting it fall into foreclosure.
A bank owned home is a home that has already sold at the foreclosure auction and is now the sole property of the bank.
Second, there is a BIG difference in the buying process of a foreclosure home and a Bank Owned Home in Colorado Springs.
If you are looking to BUY a Colorado Springs foreclosure home, chances are it will be a short sale. A short sale means that the bank will have to agree to take an amount less than the mortgage. In these cases, a home buyer who puts an offer on the home, may have to wait up to several weeks before the bank accepts/approves the offer and it could take up to 6 months before closing on the home.
Additionally, the bank will generally NOT take much less than market value … so the chances of “getting a great deal” are greatly reduced. And you will have to have the patience of Ghandi for the process to complete before you can become the new homeowner.
However, homes for sale that are in some stage of foreclosure can be in relatively decent shape, as the homeowners want the home to SELL so they do not fall into foreclosure. Also, some homeowners may be willing to do minor repairs if requested by potential buyers.
Bank owned homes in Colorado Springs, on the other hand, CAN be better deals and take WAY less time to navigate the contract and closing process. Why? Well, banks are not in the business of owning properties so they will usually list the home at well below market value and will be quick to approve offers and close quickly.
Bank owned home, though, tend to be in some stage of minor to horrible disrepair. Some former homeowners who fall into foreclosure take out their frustration on the house. We have seen many bank owned homes in Colorado Springs that have holes in the walls, massive pet stains, destroyed kitchens with no appliances, the list goes on … And, generally, banks will not fix any of this before putting the home in the market. What you see is usually what you get.
So, if you are looking for a great deal in the Colorado Springs real estate market, make sure you know what you are getting yourself into. You will also want to make sure you hire a competent Colorado Springs Realtor® to represent you in the purchase of your foreclosure or bank owned home. The banks will have heavy negotiators on their side (in both foreclosure and bank owned cases) and you should have the same support and representation. (And remember, in almost every case, your representation will be FREE.)
For more information on buying a foreclosure home or a bank owned home in Colorado Springs, or for a list of all bank owned homes or foreclosure homes in Colorado Springs, please contact us. We have extensive experience in dealing with BOTH foreclosure and bank owned purchases in Colorado Springs and surrounding areas. You can send an email with your questions to [email protected], or call us directly at: (719) 434-7525
Read Also: Colorado Springs Bank Owned Homes