| Do you plan to buy a new home? Are you eyeing | | | | sale. A subject to sale contingency will probably not |
| houses that are on short sale to fit your tight | | | | be accepted. |
| budget? Prior to deciding to offer on a short sale, | | | | If you think that you are ready to offer on a short |
| you need to carefully assess the sellers' situation. | | | | sale, then you should consult a qualified Realtor. |
| When a home is in short sale, it is being sold at price | | | | When looking for a qualified real estate professional, |
| usually lower than the amount owed to the lender. | | | | they should be able to present you with a list of |
| The seller also does not have other means to pay | | | | homes for short sale, assist in the process of |
| for the borrowed money; hence, the short sale. A lot | | | | negotiation, and communicate with the lender |
| of factors can be associated to this situation and | | | | appropriately. |
| these would include: getting laid off from work, | | | | When buying a property on short sale here are some |
| divorce, unexpected medical bills and the downturn in | | | | of the problems that you should be ready to face. |
| home values. | | | | -Buyers should be ready with possible rejection from |
| You need to know that short sale is not the same as | | | | lenders. The price a lender is willing to accept can |
| foreclosure. In the latter, the title and the rights to | | | | often depend on the expertise of the listing agent. |
| the real estate have already been granted to the | | | | The lender will require a copy of the listing history |
| lender. The best solution for homeowners to prevent | | | | showing that the listing agent has made every |
| foreclosure is to short sale their home. Although it | | | | attempt to cover the mortgage debt. They want to |
| sounds promising to the seller, you need to know | | | | ensure that the price has been decreased steadily |
| that there are also some drawbacks for the buyers. | | | | over a suitable period of time. If your offer is too |
| You need to take some of these into consideration | | | | low, the lender may reject the offer outright - |
| before you decide to offer on a short sale. If you | | | | although we would hope they will counter offer. |
| are really in no doubt that you want to write an | | | | -The seller could at the last minute reject the short |
| offer, then here are some points that you need to | | | | sale. The lender might suddenly 'move the goalposts' |
| know.o· You need patience to wait for the | | | | on the seller. An example would be expecting the |
| completion of the transaction. In purchasing a home | | | | seller to take out a loan for the deficit. In a case |
| that is for short sale, the agreement between you | | | | such as this, the seller might decided to let them |
| and the seller is not enough to close the deal. You still | | | | foreclose. |
| have to wait for the go signal from the lender or the | | | | -Buyers will not be allowed to request for repairs. |
| lenders. The average time for approval for a short | | | | Since the property is already offered at a low price |
| sale with one mortgage is two months. For more | | | | than its real market value, lenders normally will not |
| than one mortgage to different lenders, it could take | | | | allow any requests for repair. The property will be |
| three months or longer.o· You should be | | | | given to the buyer as is. No improvements and |
| ready with your cash. For you to receive immediate | | | | repairs will be done as this could cause additional |
| approval from the lenders, you need to prove that | | | | expenses to the lender. |
| you have enough funds to pay for the short sale. | | | | Keep in mind that short sales involve a lot of risk, |
| Your chances of approval from lenders will be higher | | | | and you need to take into consideration all of the |
| if you present a larger amount for down payment | | | | sides involved in the short sale. This would include |
| and have a pre-approval letter with an expiration | | | | you or the buyer, the seller, and the lender. All terms |
| date at least 3 months in the future.o· You | | | | and conditions should be agreeable to all the involved |
| should write a "clean" offer. Lenders do not like | | | | to make sure that the transaction is good. |
| buyers who cannot completely commit on the short | | | | |