If you need to settle on a new home in the next 30-45 days a short sale may not be the best option for you.
Buying a Short Sale is a good idea.
You are able to purchase a property at market vaule or sometimes 10% below market value.
many people are not selling their homes right now because the values are low.
How does a short sale work for the buyer?
A short sale is when a home owner sells his or her property for less than the amount owed on their mortgage. In other words, the seller is “short” the cash needed to fully repay the mortgage lender. Typically, the bank or lender agrees to a short sale in order to recoup a portion of the mortgage loan owed to them.3 Jul 2018
Why does it take so long for a short sale to go through?
Why Do Short Sales Take So Long? Short sales happen because the loan on the property is larger than the sale price minus all the sale expenses. With a short sale, the seller is asking the bank to take less than the amount owed. Even if you’ve made an offer and the seller has accepted it, it’s not a done deal.11 Jan 2016
What is the process for buying a short sale house?
An interested buyer typically makes an offer in line with property values, but the seller is not in a position to accept the offer. The seller’s lender must approve the offer since it is being asked to accept a lesser amount than the total it is owed.27 Mar 2019
Can a first time home buyer buy a short sale?
One of those conditions is that mortgage lender gets the final say over whether or not the property owner will accept the first time home buyers’ offer and sell. In other words, even if the home buyers and home owners agree on a sale price, the mortgage lenders can still prevent the sale from going through.
Can I live in my house after a short sale?
If you’re buying a house through a short sale, you can’t sell it for another 90 days. Mortgage services can no longer charge fees to borrowers who opt for a short sale instead of a foreclosure. Nor can they lower real estate agent commissions after an offer has been received.
Can you get a good deal on a short sale?
A successful short sale means the seller’s lender is willing to accept a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it. That’s because sellers need to qualify for a short sale.
Can you lowball a short sale?
The seller’s mortgage lender will check property values in the area so a lowball offer is not recommended. Many banks are so overwhelmed with short sale requests and multiple offers that they will most likely not even counter-offer if you submit a lowball.
How long does it take for a short sale to be approved?
What once took two months can easily take four months. The short sale process, from submission to short sale approval, is generally as follows: Submission of offer and complete short sale package from the seller. Bank acknowledges receipt — 10 to 30 days.
Photo in the article by “Flickr”