Mark Cheng's Blog: Arcadia Real Estate

Continued from Short Sales, Part 1: Taking Advantage of the Buyer's Market

Why Work with a Short Sale Expert?

When it comes to purchasing short sales, INFORMATION IS KEY. Work with an agent and company that is experienced in short sales to maximize your chance of a smooth, successful transaction. An experienced knowledgeable real estate agent can give you a competitive edge when it comes to finding the right home in the following ways:

1. Exclusive Inventory
Agents who work with short sales often have information on off-market listings that can't be found on an MLS. They may be in contact with sellers may be facing financial difficulties but have not yet publicly listed their homes because he or she is still trying to avoid the sale or is in… Read Full Post

What is a short sale?

Pre-Foreclosures, also known as short sales, occur when the selling price of the home minus all closing costs amounts to less than the total loan amount (the first and if second mortgages combined). This differs from foreclosures which is when a buyer fails to pay his or her mortgage for a period of time, typically 6 months, and the bank takes ownership of the property making the house a Real Estate Owned or REO.

For example, an owner purchased a home in the real estate boom for $500,000 with 0% down with an interest only loan. He realizes that he can no longer afford the home and decides to sell it. The home, in today's market, is now worth $470,000. After closings costs, his net cash might amount to $450,000, not enough to repay… Read Full Post