When a seller owes more on their house than its value, they can sometimes get the lender to agree to a short sale, whereby the lender agrees to release the mortgage for a sum less than what's due.
Are short sales bargains?
Sometimes. Most people hear the phrase "short sale" and automatically think of a seller that is insolvent and must sell their house quickly to avoid further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current, but property values have declined. In these instances the reduced price may in fact be closer to current market values, not below.
How do I buy a short sale?
Always do your homework before making any offers. Using a qualified REALTOR® from Jack McSweeney DRE#1027223 - RE/MAX Execs to assist you with researching a property will help you make educated decisions. We can help learn to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Obtaining these facts can help you decide how much to offer.
Use a real estate agent with short sale expertise. The real estate agents at Jack McSweeney DRE#1027223 - RE/MAX Execs can aid you in expediting the transaction and ensure that you're protected. Don't permit inexperience to delay 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 generally take longer than a typical real estate transaction. Be informed that a majority of short sales will not close in 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the terms of the sale. It's not uncommon that your offer will be seen by a committee to approve which will add time - sometimes even 2 to 3 months.
Home protection plans, buyer credits and allowances, and closing cost concessions are generally not negotiable when buying a short sale. The lender is selling the property just the way it is which means the lender isn't going to pay for repairs. Be sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Jack McSweeney DRE#1027223 - RE/MAX Execs, when we write an offer, we're looking out for your interests above all else and will always advise you to make your offer contingent upon the inspection results.
When it's time to buy, whether it's a short sale or a typical home sale, Jack McSweeney DRE#1027223 - RE/MAX Execs can help you. Utilize our experience and knowledge of real estate to be confident that you're getting a fair deal and remain protected during the whole transaction.
1720 S Elena Ave Redondo Beach, CA 90277-5705 Phone: Fax:
