National REO Liquidation Auction Compared to Brief Purchase

Have you ever noticed just how many homes are for sale on-the MLS? Not so many and those that are on-the MLS are generally CA loan modification listings. For those of you who're a new comer to this expression, short sale, that's when the bank encourage a cost for the property that's less than the balance by the present owner of the home. In summary, the homeowner is upside-down in their mortgage, they owe significantly more than their house may be worth, and they're trying to get rid of this albatross by "selling it short."The problem of trying to obtain one of these listings is that there's no assurance that you will get the house and the banks are taking months, or even years to discuss these offers. More over, the deals that are going to close are typically cash deals since, using the not enough supply, the banks are driving hard for the best terms and taking the best offers-- which often be all cash offers.As an illustration, a friend of mine just purchased a home as a short sale that she has been talking for over a year. Fortunately for her, it's an investment house because if she had to market her current home so that you can get the new one, she'd have been sitting in limbo for some time now. I don't know about you, but that is not a limbo to be in.Another example of an ongoing short sale transaction that I'm conscious of is this: my brother wants to purchase a new house because her family has extended and they need extra space. She has a home she owns with value but wasn't finding any short sale presents recognized in-a timely fashion and had a backup on the basis of the selling of her current home. Again, an incredibly untenable position, so that they decided to sell their property with collateral, lease for a year and release many presents on short sales, hoping to land something. Good luck with that, sis!Well, there is another alternative to sitting around waiting for a short sale to be recognized. One other largest store of houses for sale form MLS is just a national REO real estate liquidation auction. I'm maybe not talking about trustee sales or sheriff sales which host deals but alternatively I am talking about the huge national market houses, of which there are a few, that provide the bank's stock. The Banks are liquidating their foreclosed inventory through these stores since it is fast & easy for both supplier and buyer.Here's why the banks like it: banks put their inventory up for sale with the market house. In month one, the auction house hosts the open houses & sell the houses. In month two, they complete and close the transactions. Very little paper benefit the bank, very little usage of their resources--especially compared to a short sale with all of the discussions, the paperwork, the checking and the headaches involved because transaction.Here's why it benefits the buyers: in month one, you visit the open houses and determine your target home and target cost, attend the auction and buy the target house. In month two, you close to the purchase and relocate. No waiting, no worrying.Buying at auction is a far more secure way to acquire a new house than to attempt to buy a short sale. Do not you think?What are your experiences.....