This year, sales across many U.S. markets rose, especially as buyers purchased property at depressed price levels, many of which were short sales. In fact, research shows that almost half of the country’s real estate sales in the first part of 2014 were short sales and foreclosures. While a short sell can be a win-win situation for all parties involved, these are also deals that are often times tricky and complicated, which is why it’s essential to work with a certified short sale expert. Read on for the skinny and some help for navigating these inherently complex transactions.
In a nutshell, a short sale is when a seller sells their property for less than the amount they owes their mortgage company. This is a different type of purchase since the buyer is purchasing a property that is owned by a lender, known as a real-estate owned property (REO).
Short sales can be excellent deals for buyers and can also help sellers avoid the negative impact of having a foreclosure on their credit record. The damage can be somewhat minimized if a short sale occurs rather than a full foreclosure, especially if the seller can convince the lender to report the debt as paid in full.
One of the trickiest parts of executing a short sale is persuading all the lenders involved to take less than the amount owed on the property. It can be very helpful to involve a certified short sale expert, as they may be able to better negotiate such a transaction.
If you find a great deal that is a short sale property, consider all the issues involved before you jump in. Keep in mind that, even when all the lenders agree on the price, this type of deal can still take some time to close. Make sure to do your due diligence and push for full disclosure before you get involved on any level.
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