sunesenhutchison8 posted an update 6 months, 2 weeks ago
Buying short sales can be an extremely profitable way to purchase a single property or spend money on multiple properties. A short sale is a real estate transaction where the seller has stopped making payments on the mortgage and contains little, or no equity left in the property. The bank trying desperately never to have to foreclose (costing them thousands in legal fee’s and time) allows many times for the seller to market the property for less then the amount owed and forgive the difference.
In the bank’s mind in any event they have a problem if the borrower cannot make the payments: either they spend legal fees, time, and take the opportunity that the property will undoubtedly be in sub-par condition because of the fact that most times folks are foreclosed upon the homes aren’t properly maintained. Then they have to get the property back in shape hire and pay a real estate agent to sell the property for the most they are able to get in a REO situation. OR the bank can allow the existing seller to sell for as much as the market will allow and just pay all costs from the sale (that they would have to pay anyway) and get a check for what the house netted after the sale, a much faster and many times a lot more profitable situation for the lender and better situation for owner looking at the chance to be foreclosed upon.
To find short sales your best bet is to hire the services of a real estate agent that focuses on them or at least includes a excellent grasp of how they work. An agent that is very experienced in them could be the optimum resource to locate, negotiate, and assist you in the purchase of the property. Banks by their nature are very difficult to cope with and take an extremely very long time to make decisions about what price they’ll let their homes sell for. The loss mitigation department of the lender that’s servicing the loan will be the department handling all of the banks deals with regards to short sales, and that department of the lender is in charge of obtaining the best terms for the bank and getting as much out of the assets they are responsible for. Many times the loss mitigators can make bonuses for maximizing the amount they get for the properties that they are currently taking offers on. A sharp agent will be your best asset in defending why, and what terms you as a buyer encourage from the bank handling the sale.
The short sale process is quite detailed and every bank does things differently which means this should be looked at as a guide but for probably the most part this can be the basic routine occurring when buying a short sale. First an offer is submitted to owner (which is still in control of the property) and they have to sign off on the offer first. As a buyer you will need a iron tight loan approval or many times the bank won’t even consider the offer for fear that you as a buyer are not even qualified. After you submit the offer, seller signs off on it your offer with loan approval will be submitted to the bank. It will require typically 3-6 weeks for the bank to react to the offer. What they do throughout that time is order an appraisal of the property to determine what the fair market value of the property is in it’s present state, and marketplace. Then they put your offer in line a loss mitigators desk these mitigators handle all of the offers and review them for the bank and since they handle sales for all on the country they are typically very backed up and take a long time to respond. Once they do respond they will most likely counter the offer submitted since they want to get the customer to offer the most money for the bank as possible. Here’s in which a experienced and competent agent will help you to cope with the lender and negotiate terms in your favor not the bank’s.
When each of the terms have been decided to and the offer now becomes a contract escrow timelines start. (escrow is opened at the time of the initial offer that’s accepted by seller but hasn’t yet been submitted to bank.)
quần short will request a house and termite inspection and they are conducted just as a normal deal is, the hang-up many times is that any issues (and you will see issues) which are found with the home will not be able to be fixed generally in most circumstances since the seller has no money to do repairs. Buyer’s who buy short sales should place offers low enough that whenever small issues are located during inspections they’re OK with proceeding to close, if large major issues can be found in the home it is most likely best to go back to the bank and ask for repairs or simply cancel your contract and find another property. After inspections are complete the short sale follows exactly the same closing activities as a regular sale does.