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 short sales bargains?
Sometimes. Often times people hear the term "short sale" and automatically think of a seller that is in financial trouble and must sell their home quickly to prevent further financial problems. This is at times the case and can be an opportunity for a buyer to make the most of another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current, but property values have fallen. In these instances the reduced price may in fact be in line with true market values, not below.
What's involved in buying a short sale?
Always do your homework before making any offers. Using a knowledgeable real estate agent from RE/MAX PV Realty to help you research a property will help you make knowledgeable decisions. We can help discover to whom the property is titled, the amount owed to the lender, and whether or not a foreclosure notice has been filed. Locating this information can help you make a decision about how much to offer.
Get a REALTOR® with short sale expertise. The real estate agents at RE/MAX PV Realty can help expedite the transaction and make sure you're protected. Don't allow inexperience to hold up the closing process. Put our experience and knowledge to work in your favor.
Even with an experienced real estate agent and under the best of situations, buying a short sale property will usually take longer than a typical real estate transaction. Be aware that most short sales will not close in 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the discounted price. In most cases your offer will be presented to a committee for approval which will add time - sometimes even 2 to 3 months.
Home protection plans, buyer credits and allowances, and closing cost concessions are generally not up for negotiation when working with a short sale. The lender is selling the property "as is" which means the lender isn't going to pay for repairs. Make sure to reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At RE/MAX PV Realty, when we write an offer, we're looking out for your interests above all else and will always recommend that you make your offer contingent upon the outcome of the inspections.
When it is time to buy, whether it's a short sale or a typical home sale, RE/MAX PV Realty can help you. Apply our experience and knowledge of real estate to be confident that you're getting a fair deal and are protected during the complete process.
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RE/MAX PV Realty 29273 Whitley Collins Dr the South Bay, CA 90275
