Why Bank Owned Properties vs. Short Sales? Bank Owned Properties have already been foreclosed on, the bank owns the property and they have put the property up for sale. In a Short Sale the owner of the property is still the person who is underwater on the property. The bank may have not decided weather they will accept the sellers need to sell their property short (for less than the seller borrowed from the bank). So as a buyer you are in a position of writing an offer on a property that first the seller has to accept and then the seller has to get the bank to accept that offer (which means the bank will have to accept far less then what they made the original home loan for) a lot of banks will not commit to saying yes or no in your time frame they do it in their time frame. It is not uncommon for a short sale to take months to close and then you may only have a 50/50 chance of the property even closing.
So if you can find a Bank Owned Property as a buyer you will be able to write an offer and know with-in a day or two if your offer has been accepted or the bank gives you a counter offer. Even in this down market the best Bank Owned Properties sell fast, so you will need to move fast the get a shot at the best homes.
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