When a lender and a homeowner agree to release a mortgage for an amount less than what's owed on a house, it's called a short sale.
Are they good deals?
From time to time, yes. Most people hear the term "short sale" and routinely think of a seller that is in financial trouble and needs to sell their home promptly to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to take advantage of another's misfortune. Alternatively, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In these instances the reduced price may in fact be closer to current market values, not below.
Are you ready to buy a short sale property?
Always do your research before making any offers. Using an experienced REALTOR® like Doris Palmer Luttrell to support your research of a property can help you make informed 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. Finding this data can help you make a decision about how much to offer.
Use a REALTOR® with short sale expertise. Doris Palmer Luttrell can assist you in expediting the transaction and ensure that you're protected. Don't allow inexperience to delay the closing process. As a Certified Distressed Property Expert, you can 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. Know that most 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. In most cases your offer will go before a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home protection plans, buyer credits and allowances, and closing cost concessions are generally not negotiable when dealing with a short sale. The lender is selling the property just the way it is which means the lender isn't going to pay for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. When we write an offer, we're looking out for your interests above all else and will always advise you to make your offer contingent upon the outcome of the inspections.
When you are ready to buy, whether it's a short sale or a typical home sale, Doris Palmer Luttrell can help. Apply our experience and knowledge of real estate to make sure you are getting a fair deal and remain protected during the complete matter.
