When a lender and a seller agree to release a mortgage for an amount less than what's owed on a house, it's called a short sale. For more information, just contact me through my site or e-mail me. I'm happy to answer any questions you have regarding real estate short sales.
Are short sales bargains?
The short answer is "sometimes". Most people hear the term "short sale" and routinely think of a seller that is in financial trouble and needs to sell their property promptly to avoid further financial problems. This is occasionally the case and can be an opportunity for a buyer to make the most of another's misfortune. In contrast, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have depreciated. In these instances the reduced price may in fact be in line with actual market values instead of below.
How do I buy a short sale?
Always do your research before making any offers. Using a qualified REALTOR® from Lori Bitterman & Associates to help you research a property can help you make informed decisions. We can help reveal to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Getting this info can help you decide how much to offer.
Use an agent with short sale experience. The real estate agents at Lori Bitterman & Associates can help expedite the transaction and ensure that you're protected. Don't allow inexperience to delay the closing process. Let our experience and knowledge work in your favor.
Even with an experienced real estate agent and under the best circumstances, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that most short sales will not close in the customary 30 days or less. Remember that you're not only having to satisfy the seller, but the lender must also agree to the discounted price. It's not uncommon that your offer will be sent to a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home warranties, buyer credits and allowances, and closing cost concessions are normally not up for negotiation when dealing with a short sale. The lender will be selling the property "as is" which means the lender won't be paying for repairs. Be sure you reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At Lori Bitterman & Associates, when we write an offer, we will be looking out for your interests above all else and will always suggest that you make your offer contingent upon the outcome of the inspections.
When it is time to buy, whether it's a short sale or a typical home sale, Lori Bitterman & Associates is here to help. Apply our experience and knowledge of real estate to feel confident that you are getting a fair deal and are protected during the full transaction.
Lori Bitterman & Associates Your Single Source for Real Estate in So. Orange County (DRE #01262098) Mail to: 27101 Puerta Real, #150 Orange County, CA 92691
