Buying Short Sales
What you need to know buying short sales (pre-foreclosures):
• Lenders typically discount the amount the
amount that is owed to them.
(Hint: they still want to see the most money)
• Banks have certain formulas
that they go by in order to approve a Short Sale.
• Banks are savvy, know business and are after
the most money they can for the home.
(... but they are in the banking business, not in real estate)
• The easiest short sales are those that have
only one bank to deal with - usually.
• The bank can still foreclose on the
home if they do not get what they are looking for.
• Short Sales can take a long time
because they have to go through all the different departments in the bank to get
• After you have made your offer,
the bank may actually try to convince the seller to refinance their loan.
• All short sale contracts include a contingency
where the bank must approve the sale.
• That is true even though the buyer deals
with the seller, the person who currently owns it, not the bank.
• Without bank approval nothing
• The short sale buyer invests time and money during this
• A real estate buyer maybe better off with either a regular
sale or a home that has already been foreclosed on.
• Short sales can be deals.
• Note: if the seller has already moved out
of the property, there maybe a certain price that is favorable.
• Working with a real estate professional
who knows the process and does their homework is essential.
Call Today and Get on the Road to Recover.