Distressed Properties are the real estate for sale by the lender. There are two types of distressed sale:

• Power of sale (Lender sell the property and the borower gets the debt-remaining proceeds of sale after the properties are sold. Takes about 6 months to close the transaction.)  

• Foreclosure (Lender sell the property and the borrower gets nothing! Often banks make lump sum of money when the mortgage remaining amount is lower, takes about a year to close.)

Real estate transaction of  5 Units or less is considered as a residential transaction, and the rest over 5 units are commercial transaction:

• Residential transaction as you already know require mortgage based on your affordability, followed by purchase of residential home upto your approval limit. 

• Multiunit- residential is another way for you to increase your approval limits. For eg. if your approval limit is $800, 000 then for a legal multiunit-residential you may qualify for higher mortgage by the fair market rent value reduction, and some portion of your mortgage payments will be covered by the rental income generating from the other unit.  

• With Multiunit properties you are doing getting both owner occupied property to live-in as well as an investment unit to build up on equity.

Probate is a legal process govern by the court to transfer/distribute the assets of the deseased. 

• Probate transaction can be complicated if not carefully executed, such as using a approriate clause at the time of selling or purchasing of the real estate. 

• Real estate salesperson role is very crucial in probate real estate sale, ask your realtor to verify the status of probabte before proceeding with the transcation. 

• Chances are there will be a less of a competing offers!