Are you considering purchasing a Newport Beach distressed property? Let’s start by defining distressed. A distressed property is either going to be a Newport Beach short sale or an REO or bank-owned property.
Often times when Newport Beach homebuyers think that a Newport Beach short sale will be a better “deal” than a standard or equity sale. Newport Beach Short sales can be better deals at times, however, banks or the lien holders want a fair market value. The lien holders and lenders have processes in place to ensure that they receiver fair market value. Banks will order a BPO – Broker Price Opinions, and obtain independent appraisals to establish value. The lienholder may decide to foreclose on the property because it is in their financial best interest.
If you are considering purchasing a short sale, it can be a frustrating process for a home buyer. Often times if a short sale is listed for sale, there may already be offer(s) on the property. The listing agent or negotiator will submit that offer to the bank for approval. Keep in mind when you are perusing looking at third party websites that shows a property is distressed, there are many reasons it may show as distressed, and one is if it is being sold as a short sale. Often times – information on the third party websites is inaccurate.
My recommendation to you is to hire an experienced, local Realtor to assist you with your home purchase. The Realtor can obtain accurately and up to date information about the property that you may be interested in.
If I can answer any questions about purchasing a distressed property, please contact me.
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