Buying Short Sales Real Estate
Considering the economic situation and the way people are losing their jobs, there will be many homes that will be sold on a short sale. Therefore, if you are interested in buying short sale real estate, this could be the ideal time. |
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Basically, a short sale is done when the borrower is unable to keep up with the monthly payment obligation. So, in order to avoid a foreclosure or file for bankruptcy, the borrower decides to sell the home for a price that is lower than what he owes on the mortgage.
Here is how you can go about buying a short sale real estate.
It is imperative that you have a realtor helping your out to buy a short sale real estate. The realtor should be licensed, and should have handled short sale before. This way you will get the correct advice on the documentation, which often is the cause for delaying the sale.
Then, along with the realtor, start looking for properties that on short sale. It is quite possible that some properties will not be advertised as short sale. So, the realtor can check the MLS listing to figure out which properties are on short sale. If you happen to come across an advertisement that says that offers would have to be approved by the seller's bank, it is definitely a short sale property.
Once you have selected the property, it is time to make your offer. While you may not know the appraised value of the house, you need to remember that any offer you make has to close to that value. Also, you need to remember that the seller's bank has the final say on whether you offer is accepted or rejected. However, even the seller can reject the offer you make if he feels that it is too low. Therefore, be prudent and do your homework before making an offer.
In case your offer is rejected, you still have the opportunity to make a higher offer. Instead of wasting your time and the seller's, it is best to make a fair market offer.
Once the offer is accepted, then the process of submitting all the required documents to get the Loss Mitigation Department of the bank grant approval starts. Here you need to ensure that you furnish all the documents that are required. Otherwise, the approval and hence, the final sale will be delayed. Also, usually a short sale takes a minimum of 90 days from the time all documents are submitted to the lender to get an approval. So, be patient.
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