A short sale is not the same as an REO, Real Estate Owned property, where the mortgage lender owns the property and is selling the home directly.
A short sale is when the homeowner is selling the property for less than what the homeowner currently owes on the property.
You must be patient
The first step is to agree with the seller to buy the property. Next, the seller’s lender must agree to the sale; if there are multiple loans on the property, each lender must approve the sale before you can close.
When there is only one mortgage, Ron Buck, a certified short-sale expert, says the lender approval takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for all the lenders to approve the sale.
Ensure you are prequalified or offering cash
By being preapproved, having a strong down payment or an all cash offer you will shorten the short sale process. The fact that you are well-qualified, and your financing is in place, both display to the lender how serious you are about purchasing the property.
You don’t have any contingencies
Most lenders when dealing with short sales prefer no-contingency offers and flexible closing terms. If you have a property to sell before you can close on the purchase of the short-sale property, or if you must be in a new home by a certain date, then a short sale property might not be correct way to go.
Only about two out of five short sales are approved by lenders. But a Realtor who is trained in handling Short Sale listings and carries the PSC® SEAL OF APPROVAL (Preforeclosure Specialist Certification) will increase your chances of getting an approved contract.
A qualified real estate professional can show you short-sale homes fitting your lifestyle, help negotiate the purchase with the seller and the seller’s lender, and offer smooth communications with all the mortgage lenders.
Potential for rejection
Lenders want to minimize their losses as much as possible. If your offer is lower than the fair market value of the home, your offer may be rejected. The lender may counter offer which requires approval of both the seller and the seller’s lenders. This negotiation can increase the time of attempting to acquire the short sale.
After the lender approves a short sale, the seller might be required to sign it a promissory note to repay the deficient amount of the loan, or the lender might want to change the terms of the contract you negotiated with the seller.
No repairs or repair credits
Lenders usually require you to take a property; in “as-is” condition; which means the lender will not agree to any repairs on the property you find during the property inspection.
A short-sale is a good purchase for some buyers. If you interested in buying a short sale then contact Ron Buck, Realtor. Ron Buck is trained in handling Short Sale listings and carries the PSC® SEAL OF APPROVAL(Preforeclosure Specialist Certification).
The Ron Buck Real Estate Group has the product knowledge and transaction experience to assist you in purchasing a short sale property in Laguna Niguel, Dana Point, Aliso Viejo, Laguna Beach, Monarch Beach and Laguna Hills or anywhere in Orange County.
Ron Buck bre 01364665 Keller Williams Realty 01375978