Times have definitely changed and buyers have more options than ever before on the types of homes as well as the various methods of purchasing. The foreclosure market has introduced new ‘sellers’ into the arena in the form of banks and mortgage companies. It can be very confusing and it is important to understand the diverse processes and expected time frames to eliminate stress.
The traditional Residential Resale purchase can typically be completed within 30 to 45 days. A Realtor can assist with your negotiations with the owner, nailing down a response within a just a day or two. You should be able to get a Disclosure Statement for clarity on any past or present problems with the property. Using a Georgia Association of Realtors (GAR) contract, you can negotiate repairs and other costs associated with the purchase.
HUD owned homes can only be bid online and the closing process takes around 45 days. You are required to use a HUD contract and you will receive no Disclosure Agreement. They will provide you with a termite letter, appraisal report, inspection report and title insurance. There is no room for negotiations and you will take 24 to 78 hours to get a response from your online offer.
Many banks now are selling their own defaulted properties (REO – Real Estate Owned). The REO process usually takes 30 to 45 days to close, but you will have a longer response time (one to three weeks) to get an accepted agreement. A Realtor can make an offer for you on the GAR contract or you may be required to use their specific contracts or Amendment. A Seller Disclosure statement will not be provided and you will be purchasing the home AS IS, with no repair allowance.
Short sales are very prevalent in this turbulent market. You should only pursue this avenue if you are patient and are not on a very strict time frame. The services of a Realtor experienced in short sales will definitely assist in making this transaction smoother. A longer process of 60 to 120 days is the norm and sometimes it may even take up to 60 days to even get a response on your offer. Both the mortgage company and the owner have to approve the contract and there will definitely be specific amendments to be added to the GAR contract. Depending on the situation, you may or may not be provided a Seller’s Disclosure.
Now, more than ever, the buying process can be more complicated if purchasing a home in a ‘non-traditional’ method. Call Mark Lackey today at 404-886-8789 with the Atlanta Housing Source for assistance from one of his team of experienced Realtors. This is a great time to purchase the home of your dreams.