There are some great opportunities for buyers in today's real estate market. We have all heard about how one can get a great deal on a bank foreclosure. However, if you are willing and able to wait out a short sale purchase, that may be the best option.
What is a short sale? It is a sale where the seller owes more on the house that the market is willing to bear. Thus, if the seller has a valid hardship, his or her mortgage company maybe willing to accept a short payoff on the loan which would allow the home to be sold.
Why would the bank take a short payoff? Banks do not want houses back...it costs a ton of money to foreclose, maintain, repair and resell a foreclosed house. With a short sale, the bank saves tens of thousands of dollars on every potential foreclosure.
Why should a buyer consider a short sale? The biggest reason (other than a great price) is because the buyer will have a better chance of knowing the condition and history of the house. The buyer can often meet the seller and ask questions about the house, etc. The seller will ususally maintain the house untill closing as he or she has a vested interest in the sale go though. With a foreclosure, buyers are going in to the sale completely blind as to the history and condition of the house.
How does one buy a short sale? Buyers need to interview agents and make sure their agents have successfully closed short sale transactions. The process has a lot of steps and it is not handled properly the sale will not go through. Not every sale will go though even when an experienced agent is working the sale. It is best to work with an agent that can help set proper expectations and realistic time lines.
Banks are dealing on the short sale properties. The process is often lengthy and requires patience. But if a buyer can wait, he or she could get their dream home at a dream price!
If you want to bid on or sell your property as a short sale, email or call Marc Reno at firstname.lastname@example.org or 810-966-1200 or 810-650-2856.
Marc Reno, Associate Broker, CDPE