When a lender and a seller agree to release a mortgage for an amount less than what's owed on the property, it's called a short sale.
For more information, just contact me through my site or e-mail me. I'm happy to answer questions you have regarding real estate short sales.
Are they good deals?
Occasionally. Often times people hear the phrase "short sale" and routinely think of a seller that is in default and must sell their home fast to avert further financial problems. This is sometimes the case and can be an opportunity for a buyer to take advantage of 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 declined. In these instances the reduced price may in fact be in line with true market values rather than below.
What's involved in buying a short sale?
Always do your research before making any offers. Using a knowledgeable real estate agent from Realty 5000 to assist you with researching a property can help you make educated decisions. We can help discover to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Locating this data can help you make a decision about how much to offer.
Get a real estate agent with short sale experience. The real estate agents at Realty 5000 can help expedite the transaction and make sure you're protected. Don't let inexperience slow down the closing process. Put our knowledge and experience to work for you.
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. Know that a majority of short sales will not close in 30 days or less. Remember that you're not only having to get approval from the seller, but the lender must also agree to the discounted price. It's not uncommon that your offer will be sent to a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home protection warranties, buyer credits and allowances, and closing cost concessions are generally non-negotiable when buying a short sale. The lender will be selling the property just the way it is which means the lender won't be paying for repairs. Make sure you reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Realty 5000, when we write an offer, we are looking out for your interests first and foremost and will always advise you to make your offer contingent upon the inspection results.
When you are ready to buy, whether it's a short sale or a typical home sale, Realty 5000 is here to help. Utilize our experience and knowledge of real estate to be confident that you are getting a fair deal and are protected during the complete purchase transaction.
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