When a seller is upside down on their mortgage payments, it's becoming increasingly common for the lender to agree to a short sale, whereby the lender consents to release the mortgage for a sum less than what's due.
For more information, just contact me through my site or e-mail me. I'm happy to address questions you have regarding real estate short sales.
Are short sales good deals?
From time to time, yes. Often times people hear the term "short sale" and routinely think of a seller that is in trouble and needing to sell their house promptly to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to make the most of another's misfortune. In contrast, a lender may consider a short sale even if the seller is current, but property values have fallen. In cases such as these the discounted price may in fact be consistent with actual market values rather than below.
How do I buy a short sale?
Always do your homework before making any offers. Using a knowledgeable real estate agent from RD Team Realtors® to support your research of a property will help you make educated decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Having this information can help you decide how much to offer.
Use a real estate professional with short sale knowledge. The real estate agents at RD Team Realtors® can aid you in expediting the transaction and make certain you're protected. Don't permit inexperience to slow down the closing process. Let our experience and knowledge work for you.
Even in the best of situations and with an experienced real estate agent, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that most 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 terms of the sale. In most cases your offer will be presented to a committee for approval which will add time - sometimes even 2 to 3 months.
Home protection warranties, buyer credits and allowances, and closing cost concessions are typically not up for negotiation when dealing with a short sale. The lender will sell the property as seen which means the lender isn't going to pay for repairs. Always reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At RD Team Realtors®, when we write an offer, we are looking out for your interests above all else and will always advise you to make your offer contingent upon the inspection results.
If you're ready to buy, whether it is a short sale or a typical home sale, RD Team Realtors® is here to help. Use our experience and knowledge of real estate to make sure that you are getting a fair deal and are protected during the complete deal.
