Buy a Short Sale for a Great Deal
Posted on February 24, 2010
Filed Under free foreclosure homes listing |
If you have been looking at the real estate market, I’m sure you have noticed that many of the homes up for sale are advertised as short sale. Buying a home for under the amount that is owed on the real estate is called a “short sale.” In the current real estate market, there are many short sale options open to a potential home owner. Adjustable rate mortgages and the economic downturn have caused higher than normal foreclosure rates. If you are in the market to purchase a home, this is the ideal time to exploit the market to your own advantage. With some precise research and an open mind, you may find the home of your dreams at an unheard-of price.
Locating a Short Sale Quickly
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To initiate the short sale process, meet various real estate agents. Many real estate agents already are knowledgeable in dealing with properties that are short sales. Selling agents often have pre-existing association with the lender that is holding the mortgage. You want to use a realtor that has experience and information on how to get a property that is a good value. Once you settle on a realtor, let him or her know right away that you are looking for a short sale property. This will help the realtor find an ideal property more quickly.
Short Sales are Often Bargains
A short sale will often be offered at a good price to the buyer since the bank does not want to have their assets tied up in the property. A bank is vulnerable to losing a substantial amount of money in a foreclosure proceeding. The listing price is minimal and so you will not have to try bargaining with a seller over the price. The bank wants the property sold as quickly as possible to eliminate losing any more money.
What to Anticipate When Buying a Short Sale Property
The process of buying real estate in a short sale is a little different than purchasing a home from an individual because you dealing with an corporation instead of a person. Once the bank accepts your offer, the title company working with the bank will handle all of the title and escrow details of the purchase agreement. With a short sale, as a buyer you have to proceed swiftly. The title company and the bank may not act as quickly owing to the large amount of paperwork involved in selling a property in this manner.
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To speed up the process of purchasing a home in a short sale, get all of the required documentation in as quickly as you can. Generally there is a month or more before your closing date but that does not mean that nothing is going on. There is a complicated behind the scenes process involved in the mortgage documents and the transfer of the property. Keep in touch with your lender and realize that you are dealing with a corporation and not a person so the process will be a little different. The time before closing will slide by, and you will be in a great new home.
Lee Bell
http://www.articlesbase.com/real-estate-articles/buy-a-short-sale-for-a-great-deal-712659.html
Comments
3 Responses to “Buy a Short Sale for a Great Deal”
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Can I get a great deal on a house using a "short sale" at this point in time?
Title says it all.
Are short sales hot right now? Can I get a good house for significantly under value by using one of these?
There are some great deals on Short Sales right now. Short Sales can take a little longer to close than a normal home purchase. The Bank is the seller and sometimes they move at a slower pace. Short sales are not always the best deal, check with a good Realtor in your area and see if there are other homes that may be better for you. Make sure you pick a good location, location is everything in Real Estate.
References :
http://www.investdesert.com/blog/
Significantly under value? Probably not.
Lenders obtain appraisals and Broker Price Opinions to determine current market value, and are in a position to hold out for their price.
References :
Oregon Realtor