If a homeowner owes more on their home than its value, they can sometimes get the lender to agree to a short sale, whereby the lender consents to release the mortgage for a sum less than what's due. For more information, you can contact us through our site or e-mail us. We are glad to answer questions you have about real estate short sales.
Are short sales good deals?
Sometimes. Most people hear the term "short sale" and automatically think of a seller that is insolvent and must sell their house fast to avoid further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another's misfortune. In contrast, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have depreciated. In these cases the "bargain" price may in fact be consistent with true market values rather than below.
Are you ready to buy a short sale property?
Always do your research before making any offers. Using a qualified real estate professional to support your research of a property can help you make educated decisions. We can help learn to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Acquiring this information can help you decide how much to offer.
Get an agent with short sale expertise. We can help expedite the transaction and make sure you're protected. Don't let inexperience slow down the closing process. Put our experience and knowledge to work in your favor.
Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Be informed that a majority of short sales will not close in 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the discounted price. A lot of the time your offer will go before a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home protection plans, buyer credits and allowances, and closing cost concessions are generally non-negotiable when buying a short sale. The lender is selling the property just the way it is which means the lender will not be paying for repairs. Make sure you reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. When we write an offer, we are looking out for your interests first and foremost and will always recommend that you make your offer contingent upon the outcome of the inspections.
If you are ready to buy, whether it be a short sale or a typical home sale, we are here to help. Utilize our experience and knowledge of real estate to make sure that you're getting a fair deal and remain protected during the complete transaction.
