Ready to buy a short sale?
|When a seller is upside down on their mortgage payments, they can sometimes get the lender to agree to a short sale, whereby the lender agrees to release the mortgage for an amount less than what's due. Should you have any questions about real estate in Moore, Oklahoma, contact me here or e-mail me.|
Can I get a bargain on a short sale?Every now and then a good deal will come along. Many people hear the phrase "short sale" and routinely think of a seller that is in financial trouble and must sell their home fast to prevent further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current with their mortgage, but property values have depreciated. In cases such as these the discounted price may in fact be consistent with current market values instead of below.
How do I buy a short sale?
- Always do your research before making any offers. Using a qualified real estate agent from Boyd Real Estate to support your research of a property can help you make informed decisions. We can help discover to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Getting this information can help you decide how much to offer.
Use a real estate professional with short sale expertise. The real estate agents at Boyd Real Estate can assist you in expediting the transaction and ensure that you're protected. Don't let inexperience slow down the closing process. Put our experience and knowledge to work in your favor.
- Even in the best of situations and with an experienced real estate agent, buying a short sale property will probably take longer than a typical real estate transaction. Be aware that many short sales will not close in the customary 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the sale terms. A lot of the time your offer will be seen by a committee to approve or disapprove, which will add time - sometimes even 2 to 3 months.
- Home warranties, buyer credits and allowances, and closing cost concessions are generally not up for negotiation when working with a short sale. The lender will sell the property "as is" which means the lender isn't going to pay for repairs. Always reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Boyd Real Estate, when I write an offer, I will be looking out for your interests first and will always advise you to make your offer contingent upon the results of the inspections.