When a lender and a homeowner agree to release a mortgage for an amount less than what's owed on the property, it's called a short sale.
Are short sales good deals?
Every now and then a good deal will come along. Most people hear the term "short sale" and instinctively think of a seller that is in default and must sell their property fast to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of another's misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In cases such as these the discounted price may in fact be consistent with true market values, not below.
Are you ready to buy a short sale property?
Always do your research before making any offers. Using an experienced REALTOR® from American Dream Financial and Real Estate to assist you with researching a property can help you make informed decisions. We can help discover to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Locating this information can help you determine how much to offer.
Use a real estate professional with short sale expertise. The real estate agents at American Dream Financial and Real Estate can assist you in expediting the transaction and ensure that you're protected. Don't permit inexperience to hold up the closing process. Put our knowledge and experience to work for you.
Even in the best of situations and with an experienced real estate agent, buying a short sale property will probably take longer than a typical real estate transaction. Be aware that a majority of short sales will not close in less than 30 days. Remember that you're not only having to satisfy the seller, but the lender must also agree to the discounted price. Commonly, your offer will be sent to a committee for approval which will add time - sometimes even 2 to 3 months.
Home warranties, buyer credits and allowances, and closing cost concessions are generally not up for negotiation when working with a short sale. The lender will be selling the property just the way it is which means the lender isn't going to pay for repairs. Make sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At American Dream Financial and Real Estate, when we write an offer, we are looking out for your interests above all else and will always recommend that you make your offer contingent upon the results of the inspections.
If you are ready to buy, whether it be a short sale or a typical home sale, American Dream Financial and Real Estate can help you. Apply our experience and knowledge of real estate to make sure you are getting a fair deal and remain protected during the entire matter.
