Ready to purchase a short sale?
|When a lender and a homeowner agree to release a mortgage for an amount less than what's owed on a house, it's called a short sale. If you have questions about real estate in Tustin, California, contact me here or e-mail me.|
Can I get a bargain on a short sale?Occasionally. Many people hear the term "short sale" and instinctively think of a seller that is in default and must sell their property fast to avert further financial problems. This is occasionally the case and can be an opportunity for a buyer to make the most of another's misfortune. Alternatively, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have declined. In these instances the "bargain" price may in fact be consistent with true market values instead of below.
What's involved in buying a short sale?
- Always do your research before making any offers. Using a qualified real estate professional from Legacy Realty and Funding to support your research of a property can help you make knowledgeable decisions. We can help discover to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Getting this data can help you decide how much to offer.
Get a real estate agent with short sale expertise. The real estate agents at Legacy Realty and Funding can aid you in expediting the transaction and make sure you're protected. Don't permit inexperience to slow down the closing process. Put our experience and knowledge to work in your favor.
- 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. Know that most short sales will not close in the customary 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the terms of the sale. In most cases your offer will be seen by 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 usually not negotiable when working with a short sale. The lender will sell the property "as is" which means the lender won't be paying for repairs. Be sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Legacy Realty and Funding, when I write an offer, I am looking out for your interests first and foremost and will always advise you to make your offer contingent upon the outcome of the inspections.