All Posts tagged short sale buyers

If you have been sitting on your home waiting to Short Sale it, now would be a good time to consider making your move.  Real Estate analysts are saying that indicators look good.  Also, if you are looking to get a deal on buying a Short Sale, you may want to listen up too.

• For Sellers – some lenders such as Bank of America and Chase have now expedited short sale programs to where they pre-qualify their sellers and their homes at agreed-upon prices.  This has greatly cut down on the time it takes to push all of the paperwork required for a Short Sale through.  Also, these big banks are selectively choosing some of the more troubled properties for extra owner incentives.  Banks may pay you as much as $45,000 to sell your distressed home.
• You must start soon – if you want to get your tax break.  Lenders are also wiping out any extra debt left after the Short Sale is completed.  For example, if you owe $200,000 on your home and you sell it for $150,000, then it would stand that the bank would still be able to come after you for the additional $50,000.  What they are doing now is forgiving that debt, and that debt is typically subject to income tax.  BUT, it will not be subject to be taxed under a special provision that expires at the end of this year.  So, try your best to close your Short Sale this year – it can easily take 3 or 4 months to close once you have a buyer.
• Before a lender will approve a Short Sale, the Seller must make the case that financial hardship is keeping him from paying off his loan.  In trying to expedite Short Sales, banks are now broadening their definition of what situations qualify as hardships – a job change or impending retirement could be considered as a hardship.
• For Buyers – you should be realistic in your expectations for a bargain.  There’s more competition now that bankers and investors have caught on to what good deals these Short Sales are – usually better than foreclosures because more often they are owner-occupied and well cared for, as opposed to foreclosures which may have been stripped of appliances and other things.  Expect to pay market price for a Short Sale – avg. price is $175,000, which is still 20% below avg. price of non-distressed properties.
• Try for long locks on your mortgage rates, Buyers, because it may take a long time to find a property you want to purchase – and you want to take advantage of today’s record-low interest rates.  Even 60 day locks may not be enough to get you through to closing of a Short Sale.  If you’re buying a house that has been pre-approved via one of the banks’ expediting programs, closing time can be cut down to as little as 10 days.

If you are thinking of a Short Sale of your home . . . or looking to Buy a Short Sale, choose a realtor who is knowledgeable and experienced in Short Sales specifically.  Call Kim Kelly, an agent with HK Lane Real Estate at 760-285-3578 for a free consultation.  She Lists, Works and Closes her Short Sales !!!