Things To Consider Before Buying A Short Sale Home
The foremost reason why buyers would go for a short sale is that they can get a good deal. A short sale is when the seller’s lender agrees to have the property sold at a discounted price. A short sale could happen if the owner of the property has fallen on hard times and would need to cut his or her losses by selling the property at a lower price just to be released from the existing mortgage.
The foremost reason why buyers would go for a short sale is that they can get a good deal. A short sale is when the seller’s lender agrees to have the property sold at a discounted price. A short sale could happen if the owner of the property has fallen on hard times and would need to cut his or her losses by selling the property at a lower price just to be released from the existing mortgage.
But since short sale homes come at greatly discounted price, it means it is not easy to get with all the offers coming in for the property. Furthermore, it is not guaranteed that the lender would approve your offer even if the seller agrees to your price. Knowing that this would not be an easy endeavor, you have to be armed with the proper knowledge if you are going to target a short sale home.
One of the first things you need to do after seeing a home listed for a low price for its area, is to check if it is a short sale. The best way to find out is by getting an agent that will work with you find a good deal on your home purchase.
Check public records. By doing so, you can get enough information on your next move or moves. By checking these records, you can see to whom the property belongs to or whether a foreclosure notice has already been filed. It would also show how much is owed to the lender. This information, especially the latter would help you and your agent in formulating a good offer for the property.
For example, after checking public records, you found out that the seller has two loans. This could be more complicated as the first lender’s position is protected by the second if the second lender also wants to go the short sale route. You have to offer enough to satisfy the first with enough left for them to use as leverage to get the second lender to agree to the price. Since different lenders or banks have different ways of looking through things even if they have the same goal, for the uninitiated, this could lead to confusion.
That’s where the need for an agent with short sale experience will come in. They would give you valuable information on how much to offer to still get a good deal. Of course, you do not want to overpay for anything especially if it is a short sale home.
Resources:
Amber R. Humphrey provides you the best and latest information on short sale in San Diego. If you are in the midst of a short sale, he recommends visiting http://theapprovalexperts.com/.
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