Ready to make a deal on a short sale?
|If a homeowner owes more on their home than its value, it's becoming increasingly common for the lender to agree to a short sale, whereby the lender consents to release the mortgage for an amount less than what's owed.|
Are they good deals?From time to time, yes. Many people hear the term "short sale" and routinely think of a seller that is insolvent and must sell their house fast 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. On the other hand, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In these cases the discounted price may in fact be closer to actual market values instead of below.
What's involved in buying a short sale?
- Before you make any purchase offers, do your homework. Using an experienced REALTOR® from Eagles Wings Realty to help you research a property will help you make knowledgeable decisions. We can help find out to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining this data can help you decide how much to offer.
Hire a real estate professional with short sale experience. The real estate agents at Eagles Wings Realty can assist you in expediting the transaction and make certain you're protected. Don't permit inexperience to hold up 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 usually take longer than a typical real estate transaction. Know 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 discounted price. A lot of the time your offer will go before a committee to approve, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are typically not negotiable when dealing with a short sale. The lender is selling the property as seen which means the lender isn't going to pay for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Eagles Wings Realty, when I write an offer, I'm looking out for your interests above all else and will always suggest that you make your offer contingent upon the results of the inspections.