Today's housing market offers a unique opportunity for buyers. Never before have mortgage rates been so low, and coupled with lower home prices buyers a making out with bargain deals! One such bargain is found when someone buys a short sale. A short sale occurs when a homeowner owes more on their home than they owe to the mortgage company. Thus they are selling their home for a loss giving the bank a short equity sale; "short Sale". This is also called being "upside down on your mortgage." To sell the home both the homeowner and their mortgage company must agree to the terms of the sale which typically increases the negotiating time considerably.
From the time a buyer decides to make an offer on a short sale, to the time they close and get their keys, can vary tremendously, although average time is 3- 6 months. In that time frame an offer is received by the listing agent, various documents are collected from the homeowner and submitted with the offer to the bank, and then the bank starts their process of negotiating the offer with both the homeowner, and other lien holders, and the buyer. The process tends to take so long because the banks have no set requirements for these sales, and because they are experiencing an overwhelming amount of them at this time. The process can also be delayed if there are multiple mortgages on the home. In that case, all mortgage or lien holders need to come to agreement on the terms of the sale before a c losing can occur.
If you are considering buying a short sale the number one question you should consider is "how long can I wait." Some buyers make offers and are moving into their new home within two months. Others wait a year, only to find out the bank will not accept a short sale at all, the home subsequently goes into foreclosure, and the buyer is left starting their home search over. A few items to consider: if you are renting when is your lease up? Do you have some place to live while you wait for the short sale to go through? How long will you wait on this sale before with drawling your offer and moving on? Is your current home sold? Or do you have a home to sell before buying another home (this is important because banks do not accept contingent offers for short sales)? All are important items to consider and discuss with your real estate agent before looking at short sale listings.
Although the process may seem scary, stress, or long, many buyers are finding that it was all worth it when they close on their new home, in which they paid well below market value for! Buying a short sale is not for everybody, but for those that decide on it, it can be a rewarding move in the end.
In the Lakes of Blaine, I recently helped a client purchase a 2006 built Semler home. Gorgeous home, sold for 386k in 2006, and they scopped it up for 230k! Excellent deals are all around for those that have the patience to wait for short sales.
Rachel Scarrella Edina Realty 651-246-3210 RachelScarrella@EdinaRealty.com http://www.rachelscarrella.com/
Article Source: http://EzineArticles.com/?expert=Rachel_Scarrella
From the time a buyer decides to make an offer on a short sale, to the time they close and get their keys, can vary tremendously, although average time is 3- 6 months. In that time frame an offer is received by the listing agent, various documents are collected from the homeowner and submitted with the offer to the bank, and then the bank starts their process of negotiating the offer with both the homeowner, and other lien holders, and the buyer. The process tends to take so long because the banks have no set requirements for these sales, and because they are experiencing an overwhelming amount of them at this time. The process can also be delayed if there are multiple mortgages on the home. In that case, all mortgage or lien holders need to come to agreement on the terms of the sale before a c losing can occur.
If you are considering buying a short sale the number one question you should consider is "how long can I wait." Some buyers make offers and are moving into their new home within two months. Others wait a year, only to find out the bank will not accept a short sale at all, the home subsequently goes into foreclosure, and the buyer is left starting their home search over. A few items to consider: if you are renting when is your lease up? Do you have some place to live while you wait for the short sale to go through? How long will you wait on this sale before with drawling your offer and moving on? Is your current home sold? Or do you have a home to sell before buying another home (this is important because banks do not accept contingent offers for short sales)? All are important items to consider and discuss with your real estate agent before looking at short sale listings.
Although the process may seem scary, stress, or long, many buyers are finding that it was all worth it when they close on their new home, in which they paid well below market value for! Buying a short sale is not for everybody, but for those that decide on it, it can be a rewarding move in the end.
In the Lakes of Blaine, I recently helped a client purchase a 2006 built Semler home. Gorgeous home, sold for 386k in 2006, and they scopped it up for 230k! Excellent deals are all around for those that have the patience to wait for short sales.
Rachel Scarrella Edina Realty 651-246-3210 RachelScarrella@EdinaRealty.com http://www.rachelscarrella.com/
Article Source: http://EzineArticles.com/?expert=Rachel_Scarrella
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