shortsalecomplete's Blog

Individuals in the market to buy a home probably have a large sum of money saved up to buy their first new home. Considering that a potential home buyer only needs a small percentage of the total amount of a home for a down payment, it can still be a difficult task to find a piece of property in their price range. While real estate agents can provide great information on the latest properties in the market and the best communities to reside in, it is also a good idea to ask them about homes facing short sales.

Short sales occur when the current homeowner is unable to make their monthly mortgage payments and they must pay off their home loan by selling their piece of property for the amount owed on the loan. The lender accepts this amount for the full payment and the mortgage is out of the hands of the previous owner.

The investor in the recently purchased short sale home gets to make a large profit on the home while offering foreclosure listings to potential buyers. Their credit line is not being compromised and investors don’t have to rehabilitate the property if it needs some work. Investors are able to get the property around 60 cents on the dollar and in good condition. Some investors are willing to get a lower price—usually around 28 cents on the dollar—for a home that needs some major renovations and improvements.

Real estate agents are also benefitting in the recent economy because they are gaining many listings with no equity, which turn into a strong commissioned sales because of short sale. Short sales should be a part of investor’s real estate investment strategy and they should clearly understand how it’s a great way to stop foreclosure.  

Short sales are becoming a popular way for home owners to sell their homes and avoid foreclosure. There are many disadvantages and advantages for both the lender and the owner of a particular home in case of foreclosure. A short sale usually is a preferable action when the total loans on the property are more than the selling price, itself. In a short sale, the lender will be willing to settle for less than the total loan amount. An understanding of the short sale of real estate and the guidance of an experienced negotiator are two important arsenals for someone who is looking to have a short sale processed.

A short sale is when an owner and his or her lender decide to sell the property, which is owned by the homeowner. The most likely situation is that the homeowner can longer afford their mortgage payments, and the short sale of their home can prevent them from experiencing bankruptcy or foreclosure. A short sale can also be advantageous for the lender, as the lender will no longer have to deal with the money and time involved in foreclosing a home. However, sellers are not allowed to receive any of the profits from the sale of the home from the lender, to the new buyer.

Because of all the many different processes that are involved with a short sale of real estate, it can often take a couple of months before a buyer can actually purchase the home. First, buyer has to make an offer to the lender of the property, instead of the seller of the property. The lender has to approve the buyer’s offer, and this approval process can take anywhere from six to eight weeks.

A Short Sale Negotiator can be the solution to a faster process.

Now, according to the state of California laws, buyers will have to hire a real estate agent in order to help the buyer with navigating through the short sale of real estate process. A negotiator can help you throughout the whole process.