What About Short Sales
Short sales have been in the news a lot lately. But what are they and what’s the difference between a short sale and any other home sale?
Short sales happen when the home’s current market value is less than the amount owed by the borrower on the mortgage. The lender agrees to accept a price for the home that is less than the mortgage amount; then forgives the unpaid balance.
To purchase a short sale, you must qualify with the bank. Here are five things to keep in mind that can help you decide whether considering a short sale is right for you:
1. Don’t expect to pay less than market value – To have a good chance of being accepted, your offer must be priced near current market value of the home.
2. Get your financing in order – It can take months to get to closing; you can speed that process along if you’re a cash buyer, or by getting pre-approved financing.
3. Expect the unexpected – Even though a short sale property is listed for sale, negotiations continue between the lender and the homeowner. A solid offer from a well-qualified buyer may get the lender’s attention – or the sale may fall through.
4. Stand out in the crowd – Expect that your offer will not be the only offer; a real estate professional can help you find ways to make your offer more attractive without necessarily increasing the offer price.
5. Hurry up and wait – Note*** Unlike the name, Short sales take time, several months is not unusual for banks to process and evaluate your offer. Finding the right property can make it worth the time and effort.
Please contact me if you want help to come up with an offer that’s accepted by the bank and that gets you a great home at a great price!
If you’re ready to start your search or just learn more about short sales in general, please contact me today – I’m looking forward to speaking with you!
Rachel DiSalvo, Sales Associate
Berkshire Hathaway HomeServicesHudson River Properties
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