Purchasers who want to buy short sales rigidly believe that it will show them a good deal. Before deciding to pursue a home you see that is listed for a price you think that is too low for the neighborhood, you better ask some advice to your agent or call the listing agent to look out if the home is considered as a short sale because you might want to think twice about stepping into an offer on a pre-foreclosure, short sale home. It is not as simple as you may think it is, and a very limited number of people have the fortune to close the deal in just 30 days.
WHAT IS SHORT SALE?
A profitable short sale means that the seller’s lender is willing to accept a discounted payoff to dispense an existing mortgage. In the sense that the property is listed with short sale terms, but it does not mean that the lender will accept your offer, even if the seller accepts it. The reason is that the sellers need to qualify for a short sale. If the agents will sell a very few short sales, that means danger for your purchaser.
TIPS BEFORE BUYING A SHORT SALE HERE AT SACTOWN:
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- YOU MUST CHECK THE PUBLIC RECORDS; Make some effort to research before making an offer to buy. Your trusted agent can easily find out who is in the title, even if a foreclosure notice has been filed, and how much is incurred to the lenders- which is necessary because it will aid you to determine how much to offer. Take note that, banks are not under coercion to accept short sales, so the offer needs to be acceptable.
- YOU MUST SHOWCASE A DOCUMENTATION AND BUYING OFFER TO LENDER; Once the seller already accepts your offer, the listing agent will automatically send it to the lender for approval; you do not have an agreement until the lender accepts. Usually, the lender will want a copy of your earnest money deposit and proof of funds, as well as want to view that you are preapproved for your loan, so you better send a present preapproval letter for the lender, dated within the last 30 days. It will aid if your agent sends a list of proportionate sales that will help the price you are offering to pay for the property.
- YOU SHOULD GIVE THE SHORT SALE LENDER THE AMPLE TIME TO RESPOND; You must make your offer contingent upon the lender’s acceptance and give the lender a time frame to acknowledge it, after which you are free to back out. Some lenders comply short sales to the committee, but most can agree within two weeks to three months. As a purchaser, you cannot contact the lender, nor can your agent; the listing agent should have the right information for the lender, so you must spare an extra patient.