Why do borrowers want short sale home? They are extremely cheap. It is the cost advantage that attracts the borrowers towards buying these selling homes. Generally you can get a short sale home at 30% cheaper prices as compared to market price.
First point is the time element: You will have to close the deal within 30 days.
Are you having a sound economic condition? Can you really close the deal within 30 days? Think seriously about this point. Once you accept this type of deal there is no going back and not completing deal will involve good amount of loss. The first main tip for buying a home at short sale is making sure that you can really close the deal within 30 days.
What is the meaning of a short sale? Sellers property is mortgaged to a lender.
Lender has agreed to release the mortgage at discounted price. Even if the seller accepts your price, the lender may not accept your price. So the point is two different parties must accept your offer. Seller will have to be in default if his property is to be on a "short sale" list. Suppose that the seller owes more than the current price of the home. In that case there is no possibility of lender accepting fewer prices as compared to the market price.
You will have to check public record. Your agent will have to find out relevant info like, who is in title, whether foreclosure notice has been filled or not and most important of all, how much is owed by lenders. If there are two lenders, your problems become more complicated. Both lenders have to come at a compromise point. Suppose first lender owe $150,000 and second lender owes $30,000. And you offer $150,000 price. Now if all money goes to first lender, then second lender will get nothing. He will not agree to that. How much first lender is ready to give to second lender will determine final compromise formula. This is certainly not easy to achieve.
You must hire an agent experienced in this specific type of home buying. Everything has to be completed in a particular time deadline. You can not afford to miss any important detail in this whole procedure. You can close the home deal in a timely manner with help of your agent. So getting help of experienced agent is second important buying a short sale home tip.
You have to reserve the right to conduct inspections. There will be commission negotiations as lender is not interested in paying and seller has no money. You will have to submit documentation and purchase offer to the lender and also give him deadline for acceptance.
First point is the time element: You will have to close the deal within 30 days.
Are you having a sound economic condition? Can you really close the deal within 30 days? Think seriously about this point. Once you accept this type of deal there is no going back and not completing deal will involve good amount of loss. The first main tip for buying a home at short sale is making sure that you can really close the deal within 30 days.
What is the meaning of a short sale? Sellers property is mortgaged to a lender.
Lender has agreed to release the mortgage at discounted price. Even if the seller accepts your price, the lender may not accept your price. So the point is two different parties must accept your offer. Seller will have to be in default if his property is to be on a "short sale" list. Suppose that the seller owes more than the current price of the home. In that case there is no possibility of lender accepting fewer prices as compared to the market price.
You will have to check public record. Your agent will have to find out relevant info like, who is in title, whether foreclosure notice has been filled or not and most important of all, how much is owed by lenders. If there are two lenders, your problems become more complicated. Both lenders have to come at a compromise point. Suppose first lender owe $150,000 and second lender owes $30,000. And you offer $150,000 price. Now if all money goes to first lender, then second lender will get nothing. He will not agree to that. How much first lender is ready to give to second lender will determine final compromise formula. This is certainly not easy to achieve.
You must hire an agent experienced in this specific type of home buying. Everything has to be completed in a particular time deadline. You can not afford to miss any important detail in this whole procedure. You can close the home deal in a timely manner with help of your agent. So getting help of experienced agent is second important buying a short sale home tip.
You have to reserve the right to conduct inspections. There will be commission negotiations as lender is not interested in paying and seller has no money. You will have to submit documentation and purchase offer to the lender and also give him deadline for acceptance.
No comments:
Post a Comment