A short sale happens when a property or home is sold and the profits will be less than the debts against the property. In order for a short sale to be successful, all lien holders must agree to accept less than what is owed on the property.
Short sales can typically take quite a while to complete due to the financial obligations and paperwork so it’s not something to consider if you are looking to buy quickly. If you are planning to purchase a short sale home, you want to do your research before moving forward with the deal as it will take quite some time and you want the property to be worth the money as well.
How Does It Happen?
Depending on where you plan to purchase, the regulations will differ but there are some basic steps that are consistent from state to state. The first thing that happens is the short sale package is submitted to the lender along with their financial records. Next, the offer needs to be accepted and proof of funds submitted. Last, the bank will review the information and approve or deny the sale; this is typically the longest part of the process.
Once the sale is approved, the contract needs to be finalized and the terms approved by the lender. The details of the contract will typically state that the home will be sold in its current state without any imperative repairs. It’s also important to make sure the lender is okay with working on a short sale purchase.
The short sale process can be quite complicated so it would be a good idea to work with a realtor that has experience in this type of sale. This ensures you are following all guidelines and they can help you find homes in a niche market that meet your requirements. Once you find a home that you’re considering purchasing, that doesn’t mean you should stop looking at other options. These types of deals can take an extensive amount of time or fall through so it’s always a good idea to have a backup plan. There are a lot of aspects to consider when it comes to buying a short sale home. The price is typically lower than the average market which is great for buyers but it can also be time consuming with more roadblocks along the path than a conventional sale.
Contact Us Today!
Whether you are thinking about listing your home as a short sale or buying one, we know the process can come with a lot of questions and concerns, but we are here to help. Don’t hesitate to reach out to North Star Mortgage in Jacksonville, Fl today!