Foreclosures In Denver – Not Always The Best Choices

Housing foreclosures are in the news on an almost daily basis, and we get a lot of questions about these types of properties in the Denver metro area. Frankly, many of the condos, townhomes, lofts, and houses that have been foreclosed on in Colorado may not the best choices for first time home buyers.

For starters, almost all foreclosure properties are in the hands of banks, who have evicted the previous owners when they couldn’t pay their mortgages. The foreclosed homes are usually sold “as is,” and it’s not a given that the property is a good deal, simply because it’s a foreclosure. Most foreclosures require significant fix up and repairs, and these types of real estate transactions take considerably more time to close.

Banks move more slowly than private sellers, with multiple channels of communication to navigate, and much more back and forth in negotiations. Also, there might be multiple liens on the property to be resolved, before the title can be cleared for sale.

Along these same lines, people often ask us about “short-sales,” which, in our opinion, are the least desirable types of properties to buy. A short sale occurs when the bank and the private homeowner agree to sell the property for less than what’s owed on the loan. In most cases, the seller is still living in the condo, townhome, loft, or house, and the negotiations can be difficult.

If you’re interested in buying a foreclosure home in Denver or a short-sale property, it’s highly recommended that you work with a seasoned real estate professional who can guide you through this challenging process.

Dan Polimino or Gary Lohrman would be happy to sit down with you to determine if this type of first home will meet your needs.

Ask us about foreclosures (condos, townhomes, lofts, and houses) in Denver, Englewood, Aurora, Littleton, Centennial, Wheat Ridge, Lakewood, Golden, Arvada, Broomfield, Westminster, and Brighton.