With the housing crash and subsequent slow economic recovery of recent years, many homeowners nationwide have found themselves delinquent on their mortgage payments and facing a foreclosure on their property. Depending on the circumstances, there are some possible alternatives to foreclosure – one of these being the short sale. Short sales provide an alternative option for sellers facing serious financial hardship – an option that helps them greatly reduce their existing mortgage loan obligation and also avoid foreclosure. As a result, buyers are able to get a great deal by purchasing a home for less than the outstanding amount on the mortgage loan.
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Both the process and additional benefits of buying a short sale are explained below.
The Process
For buyers, the first step is to obtain the resources of a knowledgeable and experienced real estate agent who is versed in the short sale process. Secondly, you as a buyer should focus on obtaining a loan with the best possible rate and terms. Regarding your offer, you should ask your agent to work up language that provides you with a convenient “out” in case something is discovered with the short sale property that presents a great hindrance to you moving forward with a purchase. A qualified real estate agent can help you research the property (including any existing liens), complete a lender’s short-sale application, make a proposal, negotiate the terms and ultimately come to an agreement with the seller and the lender.
Better Pricing
When a lender is handed a foreclosed property, they have to bear the costs connected with that foreclosure, including all administrative and eviction costs, as well as continuing maintenance costs. In addition, with a foreclosure, there is no absolute guarantee that the home will be purchased any time in the near future. Often a short sale is an attractive option for lenders in order to avoid these hassles and costs. As well, by agreeing to a short sale, the bank gets to recover some of its loan costs sooner rather than later. Thus, the short sale buyer is able to obtain a much lower price than they would normally be able to afford under a standard home buying scenario.
Knowing the Home’s History
Short sales provide the buyer with the benefit of being able to know the existing homeowner and find out important or relevant information about the home and its history. With a foreclosure this may not be possible, especially when the home has been in foreclosure for many months or even years.
Relatively Short Negotiation Process
More than likely, a short sale will present the buyer with a relatively haggle-free negotiation process with the bank. Oftentimes much of the bargaining has already been done by the seller and the lender. By the time the buyer enters the picture, a general concept of what the bank is willing to accept has already been established – although the buyer should still play his part in getting the price reduced as much as possible.
If you are interested in buying short sales in the Jacksonville area, you’ve come to the right place. We have the resources to lead you to properties that match your requirements. To find out more about our real estate services for both buyers and sellers, please visit website.
