This is my first post in my New Series regarding Foreclosed and Short Sale Homes in the Northwest Suburbs of Illinois.

The Foreclosure Market in the Buffalo Grove area is about to become more active in the coming months and the opportunity is going to be available for savvy buyers. I know many people that are actively working with the lending institutions and have information prior to these Buffalo Grove Homes coming on the market.

The first thing you want to know is how to understand the Foreclosure Market which is different than the Short Sale Market.

Foreclosures Verses Short Sales

A Foreclosure is the legal process by which an owner’s right to a property is terminated, usually due to default. Typically it involves a forced sale of the property at public auction or the bank will list with an agent in what we know as a bank sale with the proceeds being applied to the mortgage debt. Bank Sales can typically close quickly once an offer has been accepted.

Short Sales are commonly known as pre-foreclosures and occur 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. Although it can be a timely wait for answer from the bank on a Short Sale, once your offer has been signed by the seller and submitted to the bank, the buyer is in no competition with other buyers.

What You Don’t Know About Foreclosures

The Old Saying is what is too good to be true is usually the case. Foreclosed properties in the Buffalo Grove area are almost always priced 10% under value and the Banks are doing this to force multiple offers from buyers that will go way over the asking price. They will collect offers for at least a week on foreclosed homes from all buying parties before they will make a decision on which offer to accept. Unfortunately the Banks have different rules then the rest of us folks. So here is where the Buyer Beware comes in: If you are looking to purchase a Foreclosed Buffalo Grove home, do your homework! Work with an agent that knows the process and has a great team working on your behalf.