If a homeowner is upside down on their mortgage payments, it's becoming increasingly common for the lender to agree to a short sale, whereby the lender agrees to release the mortgage for a sum less than what's owed.
Can I get a bargain on a short sale?
Sometimes. Many people hear the words "short sale" and routinely think of a seller that is in trouble and must sell their house quickly to prevent further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another's misfortune. More commonly, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have depreciated. In these instances 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 research. Using an experienced real estate professional from THE YOWELL TEAM to assist you with researching a property will help you make knowledgeable 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. Obtaining this info can help you determine how much to offer.
Use a real estate professional with short sale experience. The real estate agents at THE YOWELL TEAM can aid you in expediting the transaction and make certain you're protected. Don't allow inexperience to delay the closing process. Let our experience and knowledge work in your favor.
Even with an experienced real estate agent and under the best of situations, buying a short sale property will usually take longer than a typical real estate transaction. Be aware that most short sales will not close in less than 30 days. Remember that you're not only having to get approval from the seller, but the lender must also agree to the sale terms. Commonly, your offer will go before a committee for approval which will add time - sometimes even 2 to 3 months or more.
Home protection warranties, buyer credits and allowances, and closing cost concessions are typically non-negotiable when working with a short sale. The lender will be selling the property as-is which means the lender isn't going to pay for repairs. Make sure to reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. When THE YOWELL TEAM writes an offer, we will be 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're ready to buy, whether it's a short sale or a typical home sale, THE YOWELL TEAM can help. Apply our experience and knowledge of real estate to be confident that you're getting a fair deal and are protected during the full transaction.
Each office independently owned and operated.
THE YOWELL TEAM, Josh & Erika Yowell Century 21 New Millennium 23063 Three Notch Rd California, MD 20619
