Buying a Short Sale or Foreclosure
In a short sale the lender has to agree to accept a lesser amount than what is owed on a home. The seller has to agree to release their lien rights to a property in exchange for the proceeds from the sale which are insufficient to cover the total remaining balance of the mortgage. Short sales customarily take two to four months to close. The seller has to agree to the sale in writing followed by the lender.
How a Short Sale is Beneficial
You may get a great discounted price. For example, if the home is worth $300,000 you could possibly buy it for $250,000. It will depend on the lending institution, economy, and how long the home has been on the market.
How a Short Sale is Disadvantageous
A short sale will take a lot longer than a normal sale. While you are waiting you may miss out on some great buys elsewhere. The lender will normally not do any repairs. That means the buyer is stuck with the repair bills. There could be a lien holder that may have a judgment on the property. If the lien holder will not release the lien you will have to negotiate with them or the sale will fall through.
Foreclosure and Short Sales can be a Great Value
Seller’s Choice® will make sure you are well informed so you make the best decisions. We will protect you by doing a Comparative Market Analysis. We take into account circumstances that most people don’t think about. What if a home needs to have repairing or remodeling done? We know the estimated time and cost it takes to do the work when advising you on making an offer.
With Seller’s Choice® guiding you, you will know what the approximate value of the home you want should cost. This empowers you as the buyer to know how low of a price you should offer for a home. This creates the potential to make huge profits for you. Not all short sales and foreclosure are good buys. You will need to be careful. It is important to refer to someone with experience.
Buying a Short Sale Can Be One of the Best or Worst Decisions!
That is why it is critical to have a short sale specialist to represent you!