Understanding the Short Sale Process

Most of today’s home buyers will have come across properties that are being offered on short sale. Some may even consider buying a short sale home when they see how much they will be able to save if they do decide to purchase one. But as with any major purchase, buyers need to understand first what short sale is so that they would know what to expect if they decide to go through with buying a home that is being offered on short sale. A short sale is a real estate transaction wherein the lender (usually a bank) agrees to accept a price that is less than the amount owed on the mortgage. When mortgage payments haven’t been paid for 90 days or more, there is a possibility of foreclosure. Short sale is an alternative to foreclosure. Even though the lender stands the chance of losing money, it is still a better option than having the property foreclosed.

As a homebuyer, you will fully benefit from purchasing if you keep in mind a few important things. The bank (lender) will have the final say in what would be the most acceptable offer for the property. You, as the buyer, would have to come up with an offer which you think the bank is most likely to approve. You have to be very patient because short sale transactions usually take longer compared to other real estate transactions. You also have to be very diligent throughout the whole process. Inspect the house carefully. If possible have a certified home inspector look into the property. Short sale homes are sold on an ‘as-is’ basis. The expenses that will be incurred for repairs should be a major consideration when you decide on the final amount of your offer. If you have found a property that you really want to buy and it so happens that it is being offered on short sale, you can hire the services of a real estate lawyer that specializes in short sales. Your lawyer will be able to explain to you what to expect in a short sale transaction and can even guide you in coming up with what could be the most acceptable offer that the bank is most likely to approve.

 

*This is a sponsored post however, all the points and views are my own.

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Short Sale and the Real Estate Opportunity It Offers

Are you in the market for a property to buy or invest in? In looking at the listings and opportunities real estate, you may have come across properties marked as ‘short sale’. What are short sales? When the bank (lender) sees that the mortgage of a particular property is 90 days overdue and may soon face foreclosure, it agrees for that property to be sold for less than the value of the mortgage. It is then being offered through short sale. The bank sees it as a better alternative than foreclosure where they stand to lose more money.

Understanding short sale

For homeowners who are no longer able to make mortgage payments, facing foreclosure or bankruptcy can be embarrassing and stressful. There are alternatives to foreclosures and one of them is short sale. Unlike traditional real state purchase where the terms of the sale must be approved by the seller, it is the bank that must approve of the terms in a short sale transaction.

Keep in mind that short sale properties are sold in ‘as-is’ condition. The bank will not perform any repairs on them. And since the seller is also financially strained, they wouldn’t have the resources to do repairs on the property. As a potential buyer of a short sale property, you can make a thorough assessment of the property before you decide on the offer that you will make. If the property needs major repairs, you can consider the total cost of repair when you decide on the final amount of your offer.

Be Patient

For some buyers, one of the major drawbacks of purchasing properties on short sale is the time it takes for an offer to be denied or approved. In some cases, it takes 2-3 months or even more. But why is there still a market for short sales and why are buyers still interested in them? Well for one, when a buyer wants a property, regardless of whether it is on short sale or not, he will make sure that he exhausts all possible ways just to be able to buy it. Buyers are also interested in short sale properties because of the great savings that they will get from them.

Find an agent

Your agent’s experience and knowledge in short sale can make a huge difference with how fast and successful your short sale transaction will be. Choose an agent that knows the ins and outs of short sale. He will be able to help you come up with an offer that is most likely to be approved by the lender.

Purchasing a property on short sale, even if it is being offered at a much lower rate than other properties, is still a major investment which is why you need to be cautious and thorough. And if you are really keen on purchasing a short sale property, make sure that you have a basic understanding of what short sale is and utilize the services of a competent and knowledgeable agent. You will then be able to benefit fully from buying a short sale property.

 

*This is a sponsored post for Schwartz Law Firm, however, all the points and views are my own.

Image courtesy of Master isolated images at FreeDigitalPhotos.net

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Purchasing a Short Sale Property

Not a lot of people may be familiar with short sale as they are with foreclosures or mortgages. Short sale may be a relatively new term that is being used in the real estate industry. But if you want to acquire a property through short sales in nevada, you should know how a short sale goes and how you can save from purchasing a short sale property.

 

What is a short sale?

A short sale is when a lender such as a bank allows a property to be sold for less than the value of the mortgage. When the bank sees that the mortgage payments is a couple of months behind and that the property is going to be foreclosed anytime soon, they would agree for the property to be put up for short sale. They may suffer some financial loss but is it more acceptable than having to deal with a more costly foreclosure. The bank then agrees to forgive the remaining balance of the loan.

In some instances, when the bank sees that the property belongs to an area where the market value of properties are declining, they may agree to sell right away that to wait for the value to decline dramatically wherein they stand to lose more than what is acceptable.

What can you do to make sure that you will benefit from a short sale purchase?

The most important step you should take is to find a licensed realtor that has a vast experience in short sales. Your realtor will know how to navigate through the short sale market and can help identify short sale properties that you may be interested in. The property that has a bigger price reduction and which communities have more short sale properties available is also something that your realtor would know. Once you have found the property that you like, your realtor can also help you with your offer. He can suggest an offer or bid which is most likely to be accepted by the lender. He can also assist you with preparing and organizing all the documents that will be submitted once you have made your offer. Your goal of purchasing a property with a substantial discount will be made possible if you have an efficient realtor that can help you with the whole short sale process.

 

* This is a sponsored post for Schwartz Law Firm, however, all points and views are my own.

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