As someone who has seen alot of shortsales and forclosed properties, I can tell you that there are ones in good shape and ones that need work. The shortsale and forclosure market can be an opportunity for people who want to get a good deal on a home that not to long ago was out of there price range. The good ones go fast even in this market, so what do you do with the ones that need some work do? Did you know that there is an FHA loan that you can buy the property and get money to fix it without taking out a second loan?
It is called a 203k rehab loan and has been around since 1996. The main rule is the porperty must need at least $5000.00 in home repair to qualify. With some of the properties beat up or stripped clean by its former owners this can be an attractive option. You can also use this program to update your existing home by refinancing into the 203k loan. This would make sense for people who can't sell their home due to market conditions or condition of their home. You only need to talk to a lender to find out all the details around this little known program. If you have any questions feel free to comment, we are here to help.