In Las Cruces, distressed properties comprise a very minor portion of our market. These properties could be in a Short Sale Situation or Foreclosure.
Short Sales/ Foreclosure
Definition: A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
Examples: If the unpaid balance of a loan is, say, $100,000 and a property sells for $90,000, under a short sale the lender might accept $90,000 as payment in full.
Definition: A foreclosure is the legal and professional proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue homeowners' association dues or assessments.
Short Sale & Foreclosure Tips-
1) The seller/lender will not pay closing costs for the buyer. The seller/lender will pay for the title insurance and the closing fee. In most cases, the seller/lender will not pay the survey, appraisal, impact fees, tax service fee, flood certification, home warranty, or the processing fee.
2) Inspections reports are for buyer information only. No repairs will be made per an inspection report. These properties are “as is”.
3) These transactions may take 60-90 days for the lender to make a decision and close.
4) Write the highest and best offer because the lender will accept the offer that loses them the least amount of money.
5) The property is priced at a discount price that the lender may accept. The lender may counter at a higher price.
6) The buyer may have the utilities turned on in their name after the offer is accepted in order to do inspections and appraisal.
7) There is not a refund for any expenses incurred if the sale does not close.
8) If the buyer needs to be in a property at a certain time, this may not be the property for them.
9) If the buyer has the patience to wait, they will usually get a very good price on a property.
10) Buyer will need aPre-Qualification letter from a lender to make an offer.
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