Although it's a buyer's market, many seller's are in debt far beyond the value of their homes. Generally, in the front range area, it isn't as "upside down" as the rest of the country. There are pockets everywhere that have minimally suffered, and some that have even gone up in value. If you make an offer on a home that the seller is "upside down" on, there is only so much room they have to move. Then, it would have to be a short sale. Be prepared to wait months for an answer from the banks. Although the Feds have put pressure on the banks to speed up this process, they have not responded (in my experience anyway). Many times the buyers get tired of waiting and the house goes into foreclosure. By then, the appliances have been sold, possibly property damage due to vandalism or seller's anger and frustration with the banks, and often times the pipes freeze and burst because the banks don't get the house winterized in time. Sometimes, the seller's just abandon the home and the banks really can't do anything, because they don't own it yet. I did have some seller's try to do a "deed in lieu of foreclosure" and the bank wouldn't do it. Go figure. Buyers, just know when you are dealing with bank owned properties, they won't repair anything (most of the time), and that you are left with the rubble left behind by the distressed seller. |
