What you Need to Know Before Buying A Short Sale
Posted Sep 22, 2008 @ 1:22 pm, Viewed by 423 Visitors, Read 429 Times.A short sale is often an alternative to bankruptcy or foreclosure for those homeowners who can no longer afford their home. In a short sale, the lender basically accepts less than the total amount due on the home.
Don't, however, expect a steal out of a short sale for a piece of Jacksonville Beach real estate, as the lender is under legal obligation to obtain fair market value for the home. There are other points to remember before diving into a short sale:
- Choose a realtor that has short sale experience. This is not the time to go it alone. A qualified, experienced real estate agent is essential when weaving your way through the short sale maze.
- Contact an accountant to learn about short sale tax ramifications.
- Obtain legal advice if necessary to better help you understand the complications of a short sale.
- Don't expect a listing to advertise that it's a short sale. Instead, it may include language such as "all offers must meet seller's bank for approval."
- Know that a seller's lending bank makes the final decision regarding an offer. In other words, the seller may accept your offer, but the bank may then turn it down. The seller is required to submit all offers to the bank for approval.
- Don't submit low-ball offers and expect them to be accepted by the bank. In fact, the bank may not respond at all if you submit a too-low offer. Chances are that if you haven't heard back from the bank in two weeks, then your offer has not been accepted. You can, however, submit a new, higher offer.
- Don't expect to close on your short sale in a timely manner, as most short sales involve a series of extensions which may delay the closing. This can be extremely frustrating for those buyers who are trying to coordinate selling their home or leaving their rented home.
Visit the most comprehensive online guide to Jacksonville Real Estate and Ponte Vedra Beach Real Estate. Find the condo, townhome, waterfront property, gated community or luxury home of your dreams with our easy to use search functions and maps. Then put over 30 years of Northeast Florida real estate experience to your use when working with the Phyllis Frankel Realty Group. Let us guide you through the complex real estate process with our care, skill and knowledge.
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Nice post!
Having just bought a house that was a short sale this spring, I can attest to your comment "Don't expect to close on your short sale in a timely manner."
Two different banks had to give approval. By the time the second one approved, the first bank's approval had expired. It took four months to close, and it was a maddening process. Worthwhile in the end, but maddening at the time!