S H O R T S A L E
"Learn Why Short Sales Continue to Be the Single Most Effective Technique Used to Acquire Investment Property!"
A short sale is a legally-binding agreement to allow a home to be sold for less than the amount that is owed.
A Short sale is a type of pre-foreclosure sale in which the lender allows the property securing a mortgage or deed of trust loan to be sold for less than the full amount due, and accepts the proceeds from the sale as payment in full. The lender may allow a short payoff sale due to factors such as the borrowers deteriorated financial circumstances, the propertys physical condition, and local real estate market conditions.
What is involved in the process?
A successful short sale involves the following seven steps:
- Prequalification of the homeowner, the property, the real estate market and the lender to determine if it would make financial sense for both the borrower and the lender to agree to a short sale;
- Researching and gathering information, documents and data to be submitted in support of the proposal to the senior and junior lien holders (generally lenders);
- Marketing the property to find a ready, able and willing buyer/investor
- Preparing a compelling proposal indicating the benefits the lender(s) (and other lien holders, if any) stands to gain from the short sale versus allowing the property to go to foreclosure;
- Submitting the proposal to the lender(s) and any appropriate entity and/or individuals;
- Negotiating terms for approval;
- Closing the deal.
Before You Buy a Short Sale
Let me show you how I can save you a lot of money buying a short sale. Buyers pursue short sales to get a good deal. So when you see a price listed for a home that you think is too low for the neighborhood, before you jump on that price, ask your agent to call the listing agent to find out if the home is a short sale.
With a Short Sale, you must be patient. It's not as simple as you may believe, and very few can close in 30 days or less. You can save thousands of dollars on most short sales. You need to work with an expert realtor that understands short sales and what is involved.
Check the Public Records
Do your research before making an offer to purchase. Your agent can find out who is in title, whether a foreclosure notice has been filed and how much is owed to the lender(s). This is important because it will help you to determine how much to offer.
If there are two loans, you will probably deal with the second mortgage lender. The first mortgage lender's position is protected by the second lender unless the second lender does not want to foreclose.
Hire an Agent with Short Sale Experience
It's one strike against you if the listing agent has never handled a short sale, but it's even worse if your own agent has no experience in that arena. You need an experienced short sale agent.
An agent with experience in short sales will help to expedite your transaction and protect your interests. You don't want to miss any important detail due to inexperience or find out your transaction is not going to close on time because no one has followed up in a timely manner.
I have closed many short sales and currently have 16 on the market.
If you have any questions regarding short sales, probate or foreclosures, call me anytime.
12029 Saratoga Sunnyvale Road, Saratoga, CA 95070