Short Sale

Posted Jul 28, 2008 @ 10:01 am, Viewed by 37 Visitors, Read 37 Times.

 

What is a Short Sale???
There are many Realtors that say they are Short Sale Experts and the truth is a few classes on the subject do not make them experts.  Until they have actually closed on a few, it is hard to explain this process to a buyer or seller and have them truly understand what they are getting into. 
For the seller;
Basically, a short sale is just this. You are asking the bank to forgive your mortgage loan and sell it at less than what is owed on the property so you do not have a foreclosure on your credit.  This is hard to do since the bank will be losing money but at the same time, if you are falling behind in payments and will not be able to afford future payments, and have probable reason of why you can’t afford them,( Loss of job, death of spouse, adjustable rates rising to payments now not affordable to you...etc.) banks will sometimes allow your home to be sold at a lower price or at current market conditions for your area.  There are a lot of hoops to jump through to make this happen and it can be a lengthy process, but avoiding foreclosure will be a necessity if one day down the road, you hope to purchase a home again.  It can also help you from having to continue to make payments when struggling, and put your money towards things that you need to help you get back on track.  This process is not a guarantee and can be hard to do with some lenders, but is a last option on helping you get back on your feet.
 
For buyers: 
There are so many of these short sales up on the market. Most of these have not been approved by the bank.  It takes a contract to be placed in order to get the ball rolling in most cases and it could take anywhere from 30 to 60 days just to hear a yes or a no on your offer. They may even counter on the listed price. All of these are subject to lenders approval.  This is not the route to go if you have a set date you need to move in by.  Make sure if you are looking at short sales to ask if the bank has approved the price being offered and get that in writing from the bank holding the loan, or be prepared to wait.  This is a good way to buy a home in a community that you may have been in love with 3 or 4 years ago, but couldn't afford, now you can, but remember, you are only buying the house for what it is worth!  Don’t be fooled by being told that you are getting a huge amount of equity.  The bank that holds the loan will not give it away, but may let it go for what it is now currently worth.
There are so many other fascist’s to buying a short sale but the basics are if you have lots of time, and wont be terribly disappointed if the bank fails to approve the short sale, sometimes days before you may close, it is worth a shot.  Remember that other homes out there to be sold are at these great prices too, and those are much easier to deal with and you will probably have less heartbreak when it comes to your purchase.
If you are interested in any of this call us and we can go over it with you in even more detail.  It could be just what you are looking for; we just want you aware of all details before you jump in!

Team Davis 301-870-1313

 

 

 

 

 

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teamdavis

teamdavis I have been a top producer in Real Estate for over 27 years. My business has flourished through all the different market conditions. Customer satisfaction and education are my lode stars. Read More

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