short saleMany people choose to purchase short sales because they believe that by buying a short sale, they are getting a good deal. This can be true, but it’s also important to remember that short sales can often be more difficult to purchase than buying a regular home. It can often take a significant amount of time to purchase a short sale; they rarely close in less than 30 days. If you are under a time crunch and need to move into a new home on a much shorter time line, purchasing a short sale might not be the best option for you and your family. However, if you have a lot of time and are interested in making a great deal, a short sale might be the answer for you.

A short sale is when a mortgage lender is accepting a smaller amount than what is owed in order to release a mortgage. Not all short sales are homes that are in default. In some cases, a mortgage lender may consider a short sale if the home has significantly fallen in value. In that situation, where the seller is encumbered and owes more than the home is worth, a short sale merely brings the home in line with market value instead of below it.

It’s often a good idea to check public records before making an offer on a short sale. By doing this, you can find out whether or not a foreclosure notice has been filed, who is in title and how much to offer. This background research can help you decide how much to offer for this home.

Sometimes, there are two loans associated with a short sale. This can often be a problem if you are interested in purchasing this particular piece of real estate. This is because the first mortgage lender is protected by the second, unless the second mortgage lender does not wish to foreclose. In order to get the second lender to cooperate in a short sale, often the first lender has to give something to the second; this is because if the first lender is owed $200.000 and the second lender is owed $50,000, selling the home for $200.000 leaves nothing for that second lender.

Tags: , ,

This is filed under Short Sales.

     Twitter It!