Short Sale Process
The Short Sale Process
When you are looking for a home to buy, you should be aware that a short sale listing is different than a foreclosure listing. A short sale listing entails purchasing a home from a buyer through a special program offered by their finance company. This program allows the seller to sell their home for less than what is owed on their mortgage, if they meet certain qualifications.The Short Sale Process If a home owner becomes financially unable to meet their mortgage payments and they owe more money on their loan than their home is worth, they can apply to sell their home as a short sale.
This process involves working with the loss mitigation department of the finance company and an experienced real estate agent. Buying A Short Sale Listing If you are interested in purchasing a short sale listing, the very first thing that you need to do is contact a real estate agent that specializes in short sale transactions. Your real estate agent can help you prepare the short sale offer that needs to be presented to the bank.
Your short sale offer will be reviewed by the bank. Of course, they will want an offer that is as close to market value as possible. Your real estate agent will know what the mark value for similar properties in the area and can help you make a genuine offer that the banks will want to accept. It is very important to understand that a short sale listing takes a lot longer to process than a traditional sale or a foreclosure listing. On average, purchasing a short sale property can take as long as four months to complete, with some sales taking six months or longer if the bank is processing many short sales at one time.One Very Important Point To Remember About The Short Sale Process Buyers who are looking to purchase a short sale listing must take into account that these properties generally need repairs when purchased. The current home owners are suffering financial hardships, so it is easy to assume that proper maintenance or repairs is not taking place.Similar to a foreclosure listing, you must account for these repairs in your short sale offer. Working closely with an experienced short sale real estate agent will allow you to make an appropriate bid on a short sale property.