If a seller is upside down on their mortgage payments, they can sometimes get the lender to agree to a short sale, whereby the lender agrees to release the mortgage for an amount less than what's owed.
Are short sales good deals?
Occasionally. Most people hear the phrase "short sale" and instinctively think of a seller that is in default and needs to sell their property promptly to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to do well from another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current with their mortgage, but property values have fallen. In these instances the discounted price may in fact be in line with current market values instead of below.
Are you ready to buy a short sale property?
Prior to making any purchase offers, do your research. Using an experienced real estate professional from EXIT Plan Realty to support your research of a property will help you make knowledgeable decisions. We can help learn to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Having this info can help you make a decision about how much to offer.
Use a real estate professional with short sale expertise. The real estate agents at EXIT Plan Realty can assist you in expediting the transaction and make sure you're protected. Don't allow inexperience to hold up the closing process. Let our experience and knowledge work for you.
Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Be informed that most short sales will not close in the customary 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the terms of the sale. In most cases your offer will be seen by a committee to approve which will add time - sometimes even 2 to 3 months.
Home protection plans, buyer credits and allowances, and closing cost concessions are typically non-negotiable when working with a short sale. The lender will sell the property "as is" which means the lender will not be paying for repairs. Be sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At EXIT Plan Realty, when we write an offer, we're looking out for your interests first and foremost and will always advise you to make your offer contingent upon the inspection results.
When it's time to buy, whether it is a short sale or a typical home sale, EXIT Plan Realty can help. Utilize our experience and knowledge of real estate to feel confident that you're getting a fair deal and remain protected during the complete deal.
EXIT Plan Realty 1515 Herbert St., Suite 212 Port Orange, FL 32129
