Some Short Sales are just ‘UNCLOSEABLE’…
December 23rd, 2009 Categories: Pre Foreclosures, Real Estate News, Shortsales
The Sacramento Short Sale “Mirage”
Buyers pursue short sales to get a good deal. So when you see a price listed for a home that you think is too low for the neighborhood, before you jump, ask your agent to call the listing agent to find out if the home has already got offers and may be going Contingent. Also find out about how many banks, which banks, if the loans were purchase money also, if there is a second, is it an original loan or was it added later or refinanced. Are there full recourse loans involved? Will there be Seller Contributions? These questions and whether the home is owner occupied, if it is a second home, the owners financial situation… these all have an impact on whether or not the deal has a chance to be approved.
Click here for your free short sale guide and glossary.
“…May pursue a deficiency judgement for the difference…”
If the listing agent doesn’t have quick answers and a logical plan when ask “what is your plan for getting short sale approval?”- This Short Sale may be a “mirage”- some are uncloseable… you might just walk away.
Find a better situation.
Because you might want to think twice about making an offer on a pre-foreclosure, short sale home. It’s not as simple as you may believe, some will never close and very few can close in 60 days or less.
Many of my Sacramento short sale home buyers have waited 4 to 6 months to close on a short sale, sometimes longer.
What is a Short Sale?
A short sale means the seller’s lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.Be aware that the seller need not be in default — to have stopped making mortgage payments — before a lender will consider a short sale. A lender may consider a short sale if the seller is current but the value has fallen. The seller may have over-encumbered, owe more than the home is worth, so a discounted price might bring the price in line with market value, not below it.
