Short Sales .... What are they??
A short sale is simply a method of selling your home for less than the amount you owe the bank. To a buyer, this means that you can pick up a home for less than fair market value (within reason) and for less than what the seller owes the bank.
The major difference between a short sale and foreclosure is that in a short sale the individual homeowner owns the home while in a foreclosure the bank owns the home. Many short sale buyers are running around thinking that a short sale means that it is bank owned. This is not the case. The bank has to approve a short sale, however, because they are receiving less than what is owed to them and they have to make the decision on whether to release the lien for less than full payoff. In a short sale, the offer is made to the seller and a contract occurs between the buyer and seller, not the buyer and bank. It is contingent on 3rd party approval and there is a specific addendum that is used that addresses this.
A high percentage of homes for sale in the Northern Virginia area are potential short sales. This becomes very common when you have a sharp drop in the real estate market after a lot of appreciation in the prior few years. Many homeowners who have bought in the past 5-7 years find that they are upside down on the home and need to short sale to get out. This also happens when homeowners bought low and refinanced or took out a line of credit against the home.
Short sales are not the easiest of transactions, however, with a little patience you can get a really good deal on a home this way. Short sales should never be attempted by anyone that lacks the education and training to successfully complete this type of transaction. The use of a Jacksonville Short Sale Specialist is crucial to the success of your transaction. When a short sale is not done correctly, the probability of success is extremely low. When done correctly, there is a much higher chance of success.
Many factors go into a short sale for the buyer and the seller. For the seller the type of loan you have, whether you have a second mortgage, even the bank that holds your loan are all factors. Did you know that an acceptable offer to the bank varies on the type of loan you have? Sending a lowball offer to the bank that has no chance of acceptance can cost you much more than time. Structuring the short sale deal for success is the job of your short sale specialist.
We are short sale experts and can help you whether you are a seller who owes more than your home is worth or would like to buy a home through a short sale.
Short sales are a win-win for the buyer and the seller when done correctly. Using a short sale specialist greatly increases your odds whether you are a buyer or a seller.