The buyer says they want to buy a short sale, because you have heard that much can be achieved that way. What is a short sale, really?
Say a homeowner bought a house for $ 500,000, but the market has fallen in both the value of the house has been reduced to $ 400,000. Now the homeowner inside with us a loan of about $ 500,000 and possibly more with other negative amortization loans, and a resale value of $ 400,000. Instead of being executed mortgage because there are so many families in this situation, the bank knows that if you foreclose on the house, they will simply start to market value, which could be now as low as $ 370,000.
Then you should proceed to foreclosure and related costs, secure the house, pay for repairs and restoration as most homeowners in financial difficulties are too for routine maintenance of the house. The foreclosure process can take up to a year. Instead passing the course is not cost effective foreclosure, the bank agrees to forgive a portion of the debt or all of the outstanding debt, if the owner will sell home market price.
Buying a "short sale" or pre-foreclosure home can incur a lot of time waiting to join various months, especially if the processor involved is doing a poor job or if the owner is trying to do too much of their own sale. When a buyer makes an bid on the house, the mortgage holder or the bank will order an assessment at home.
The homeowner does not care what the selling price is because they have nothing to gain. This often leads to an artificially low level, or simply fictitious sales prices of homes short sale. While this may attract more people to bid into the home, the effort is lost because the prices are not actual sale prices.
In addition, sometimes the price has to be high enough to a partial recovery of bad debts of the owner of the house too. Each party, the seller, the mortgage holder and the buyer has to negotiate and agree terms of the sale. Each part has a number of "outs" in which they can escape to the sale and prevent the sale. Even the seller may reject the offer when they read the fine print and do not realize they are getting a full release of the bank of their responsibility.
In practice, a short sale offer, a properly written authority real estate agent can act as an option to buy a house. The offer, correctly written not require a down payment so that if all parties agree on the sale, which may work well for everyone. The buyer has a window of ten days to assess the availability and the home and can withdraw without any Penalty.
Search Find a good real website helps with the short sale process for the buyers. If the website allows you to filter down to short sales only, which can help narrow the search to the right kind of properties for your business.
Article author and photographer Dave Keys is one of the Orange County photographers providing real estate photography in Southern California.
What is a Short Sale?