Snag a Deal on a Short Sale

reasons to buy a short sale

Reasons to buy a short sale!

As more homeowners find themselves underwater — owing more on their mortgage than their home is currently worth — and unable to make the monthly mortgage payments, many are turning to short sales, which allows a homeowner to sell their home for less than owed on the mortgage. With the lender’s approval, home buyers can purchase properties in desirable neighborhoods and at favorable prices.

KEEP THIS IN MIND

•  As of July 2014, the percent of Roseville homeowners underwater on their mortgage is 14.5%, which is lower than Sacramento Metro at 20.0%.

• Unlike foreclosed properties, which may be run-down and vacant for many months, short-sell properties are likely to be better maintained as many owners may still live in the home.

• In a short sale, the homeowner must receive approval from the lender before the sale of the property can proceed. With many lenders overwhelmed by short-sale transactions, it can take between two and six months to execute.

• Working with a REALTOR® who has experience with short sales can help both sellers and home buyers during the transaction. A seasoned REALTOR®  in Short Sales will be able to serve as the mediator between the seller and the lender and lead to a successful transaction, while a buyer’s agent can help with offers, counter offers, home inspections, closing, and more. Make sure you work with a Realtor that knows how to qualify what properties to make offers on. Some properties will never get closed. It depends on many factors:

1.      How many loans are on the property?

2.      How far away is the foreclosure sale date?

3.      Who the loan is serviced by?

4.      Who the investor is that owns the mortgage.

5.      If the seller qualifies for a short sale.

An experienced Realtor will know which properties you should make offers on and which ones that are a waste of time.

• It is important to remember that although the seller may be anxious about selling the property and willing to accept any offer, it is ultimately up to the lender to determine if, and at what price, the property can be sold. Therefore, home buyers should work closely with their REALTOR® to submit a realistic offer.

• Buyers should ask the lender to pay for some of the closing costs as part of the contract. The contract also should specify that the buyer will not conduct an appraisal or inspection of the property until the offer is approved. This added guarantee can protect home buyers from spending money on a home they may not purchase.

Kathy Dyer Realtor CABRE #01723710

kdyer@KW.com  831-717-7047

KW Coastal Estates

Carmel Ca. 93923

Kathy Dyer Realtor with KW Coastal Estates serving the Monterey Peninsula area

Advertisements

2 responses to “Snag a Deal on a Short Sale

  1. Pingback: What will it take to get you to buy a house? « Roseville Ca Realtor’s Blog

  2. Pingback: Home ownership becoming more appealing than renting « Roseville Ca Realtor’s Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s