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Short Sales; great deals available for those who can wait!

Short Sales; great deals available for those who can wait!

Foreclosures and Pre-Foreclosure Short Sales have been areas where I have focused for some time and learned valuable lessons on what works and what doesn’t when dealing with either approach to buying a home.

I learned that for clients that are willing to wait, a Short Sale is a terrific way to buy a home, and I would like to give you some advice on how the process of a Short Sale works.

Why do sellers choose a Short Sale approach to sell their home?

A-     Because the present value of their home is lower than the balance on their mortgage.

B-     Because they want to avoid Foreclosure which will have a very negative impact on their credit rating and although their rating will be impacted by a Short Sale, it won’t be as severe as what will happen if their home is foreclosed by the lender.

How does the process of a Short Sale work?

A-     The home is listed as a Short Sale by the Seller and their Listing Agent.

B-     The Buyer’s Agent presents an offer to the Seller’s Agent which is for a much lower amount than what the seller owes the lender. The offer then has to be presented to the lender for approval.

C-     The lender reviews the offer and determines whether is acceptable and informs the Seller’s Agent if the offer is accepted or if they are countering and for how much. This is where patience on the part of the Buyer is on their side, because this process can take from a few days to as much as weeks or even months.

Why is a Short Sale a good deal for all parties involved?

A-     The Seller avoid Foreclosure which helps them reduce the negative impact on their credit rating and potential lawsuits.

B-     The Bank collects a good portion of what it is owed, avoids the expense of Foreclosure proceedings and prevents potential damage to the home which can eventually bring the price down even further.

C-     The Buyer gets a great deal on a home that will usually be in better condition than one that has been foreclosed by the lender.

If you are looking for a great deal on a home and are willing to wait for the Short Sale process to take its course, there is no better time than now to buy a home because interest rates are at an all time low.

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Sean Roque

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