With more and more distressed sales filling local real estate markets it’s time for a quick check-in on tips for buying distressed property.

Buying a distressed property can be complicated but the opportunity is pretty amazing if you’ve got it.

First, what is distressed property? A distressed property is usually one that is either in danger of going into foreclosure or that will be up for sale because the homeowner defaulted on his mortgage. These transactions are quite different from your average home sale because you’re dealing with the bank’s own red tape, which can add a lot of time to close.

Just remember these three things:

Be flexible. When buying a distressed property, it’s good to have flexibility – especially with your move-in date. That’s because closings often can get delayed and the closing date is more or less an “estimated” date. Take a bit of stress off your back by either having a back-up plan (crash at your in-laws’ place for a couple of weeks?) or trying to give yourself an extra month at your old place if you can afford to do so.

Be patient. With a distressed sale, you’re dealing not just with your lender and a seller, you’re dealing with the original lender on the property and its whole chain of command to get things approved and moving. This can be frustrating. But honestly, there’s not a whole lot you can do at times except be sure you’re on top of your own deadlines, deposits, inspections and paperwork, and sit back and be patient.

Work with an experienced agent. OK, so you can’t always sit back and be patient. There will be times when you might need to get a little aggressive to keep things moving. An agent experienced with distressed property will know how to handle those times. In fact, there may even be situations where the best outcome is to decide to walk away and find another property. It’s important to find an agent who knows the process, local market conditions and you (as in, your threshold for stress and panic, your motivations, your limitations, etc.).

Buying distressed property can be a pain, but it’s one that can also come with many rewards. Many markets are flooded with distressed properties so if you’re in the market to buy, now’s the time to consider whether it makes sense for you. Contact a Commonwealth agent today to find out more!