Want to purchase a short sale?
When a lender and a homeowner agree to release a mortgage for an amount less than what's owed on the property, it's called a short sale.
Are they good deals?
Quite often, yes. Usually people hear the term "short sale" and routinely think of a seller that is in financial trouble and needing to sell their house quickly to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to take advantage of another's misfortune. More commonly, a lender may consider a short sale even if the seller is current, but property values have fallen. In these cases the "bargain" price may in fact be consistent with actual market values rather than below.
What's involved in buying a short sale?
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Always do your research before making any offers. Using a qualified REALTOR® from IML Real Estate to help you research a property can help you make knowledgeable decisions. We can help find out to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Finding these facts can help you decide how much to offer.
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Hire a real estate agent with short sale experience. The real estate agents at IML Real Estate can assist you in expediting the transaction and make certain you're protected. Don't let inexperience slow down the closing process. Let our experience and knowledge work in your favor.
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Even with an experienced real estate agent and under the best circumstances, buying a short sale property will usually take longer than a typical real estate transaction. Know that a majority of short sales will not close in 30 days or less. Remember that you're not only having to get approval from the seller, but the lender must also agree to the terms of the sale. Commonly, your offer will go before a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
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Home protection warranties, buyer credits and allowances, and closing cost concessions are usually not up for negotiation when working with a short sale. The lender will be selling the property as seen which means the lender won't be paying for repairs. Be sure you reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At IML Real Estate, when we write an offer, we will be looking out for your interests first and will always advise you to make your offer contingent upon the inspection results.
If you are ready to buy, whether it is a short sale or a typical home sale, IML Real Estate is here to help. Use our experience and knowledge of real estate to be certain you're getting a fair deal and remain protected during the whole deal.