Today, while visiting with a buyer, I was reminded of the importance of knowing just a few terms that circulate in the real estate world.
This particular buyer stated that they were looking for short sales only because they were such a great deal and they loved the featured that they were "short".
Please keep in mind that the term short sale comes from the purchase price not being sufficient to cover the loan(s) currently on the property. If you see a great purchase price on a property say for $200,000, it may look like a good deal, but keep in mind there is much more under the surface. The price was determined between an agent and a seller and on the front end these prices have usually not been approved by the lender. Wow, the price looks great, however sometimes it is just bait.
Here's what I mean. The seller is trying to get a conversation going that would lead to the offer. The seller will not see proceeds from the sale due to owing the lender more, sometimes much more.
When you make your offer, there may not be anything "short" about it. As matter of fact, the seller will probably approve the offer but that initiates a process from the current lender to give a "conditional approval". This could take just days but could take months. Please keep in mind that there may be an approval or a denial or something in between.
So when making an offer on a "Short Sale", remember, there may be nothing short about it other than what the bank decides.
So what is the best type of property to make an offer on to close without waiting? A property that is not "under water" or a property that is owned by the bank, after foreclosure.
Tony Williams
Certified Distress Property Expert
REMAX Unlimited
Servicing the Atlanta metro market
404-644-8584
www.gahomeinfo.com
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