As a homebuyer you might come across one or more properties that are classified as a short sale. A short sale is an effort by the current owner to sell their home in lieu of the bank repossessing it through foreclosure proceedings, thus partially salvaging their credit rating and lifting the burden of high mortgage debt.
The short sale process rests on the hope that the bank will accept a loss, approve the sale, and eliminate the expensive process of foreclosing and reselling a home. Since this is a huge hope to you as a homebuyer, you should understand some things in order to reduce the chance of being disappointed of unapproved short sales. The following are some tips to assist you:
Remain positive and patient during the short sale process because it may take a few months to complete.
Keep your options open and continue checking out several properties. Try not to get your hopes and heart set on one property. Remain optimistic, like all real estate the right property will come along.
In most cases lowball offers get slow or no response. The bank is typically aware of the pricing during a short sale. When lowball offers stream into the bank they are often scoffed at and rejected, giving the prospected buyers little or no feedback.
Don’t ask for repairs. Most banks will not pay for any repairs or replace unless they’re required by the lender in order to obtain an FHA or VA loan. And sometimes they will just ask buyers or sellers to pay for the repairs or even start marketing the property to cash or conventional financing buyers.
When you get approval, it is imperative to close the loan on time. Unlike a traditional sale, there is no leniency with the closing escrow date.
Although short sales can be a wonderful opportunity to find your new home at a competitive price, a short sale can also be a major headache that may lasts for several months. It is important to have a clear understanding of the factors that lead to a successful short sale so that it can be an enjoyable and profitable experience.
APPROVED SHORT SALE AT $149,000***EXPERIENCED AGENT***3 LEVEL, 3 BED, 2.5 BATH TOWNHOUSE IN A QUIET NEIGHBORHOOD! SEPARATE DINING AND LIVING ROOM! LARGE KITCHEN WITH SPACE FOR BREAKFAST TABLE!! NEEDS NEW CARPET, PAINT AND TLC TO MAKE IT SHINE!! FULLY FINISHED BASEMENT WITH DEN AND KITCHENETTE!! MINUTES DRIVE FROM SHOPPING, DINING, MALL AND EVERYTHING YOU NEED TO LIVE!!
It’s 11/11/11 and this was posted at 11:11 am. Yes, I actually waited all morning to post this at the right time :-). I’m not a superstitious but I did it for all my superstitious friends out there and to THANK OUR VETERANS (remember Armistice Day). Today is a day the arrives once in a century so why not take full advantage of it! There is a long list of superstitious beliefs that people follow are the world, but over the last few years, I’ve noticed more people have pre-conceived notions about short sales in the housing market. Some of these “beliefs” about short sales are almost superstitious and I’ll try to demystify them.
But before I begin, today is Veterans day so a SPECIALS THANKS to our Veterans who have worked so hard to make sure we get to enjoy the freedoms that we have today…Thanks for serving our great nation!
Whether you like it or not, short sales are part of real estate and they’re not going away anytime soon. Roughly 40% of home sales in today’s market are short sales or foreclosures! Distressed properties are well worth their value but before you get involved in the short sale, it is important to really understand the basics.
What is a short sale? Short sale is defined as a sale where the debt owed against the property exceeds the property’s market value. The lender normally incurs a loss and must agree to the sale in writing, thus preventing a foreclosure if the home sells.
What are the seller’s benefits? The number one benefit for the seller is that they will avoid foreclosure or bankruptcy, both of which Continue reading →
DESCRIPTION: Approved Short Sale at $180,000 with 3% closing cost assistance. Beautiful end unit 3 level, 3 bed, 2.5 bath townhouse in a well desired neighborhood! Hardwood floors, finished basement with rough in for half bath! Cathedral ceilings in bedrooms! Master bedroom with full bath and walk-in closet!! Large kitchen with breakfast bar and space for table!! Separate laundry room with lots of storage space! Fenced back yard with back to trees! Sold “AS-IS” but shows like a model!! Call today to see!!