Short Sale…..
What does that mean to me……
{Oh, yea what about NOD and Foreclosures}
With so much in the news about SHORT SALES I often find people not sure what that really means… some have asked… “Does that mean that it will take a “shorter” amount of time to close escrow” -- good question, and I wish it was that simple.
A SHORT SALE means that the Seller is going to be “SHORT” on money to pay off in full the balance on the mortgage and what the costs of the sales transaction will be. Sellers of a property are typically responsible for much of the cost related to that sale. You can figure about 8-9% of the sales price is an average ‘cost’ of sale. ** Request for repairs or mandatory termite work is a big variable and often not clearly known until the inspections are completed.
Weather a home owner needs to sell because of death, divorce, job relocation or financial set back, family crisis; the bank has to be an agreeable part of this sale. A financial hardship must be documented and declared in order for a short sale to be approved by the lender.
A ‘Short Sale’ is NOT always a ‘Foreclosure’ – and a ‘Foreclosure is NOT always a ‘Short Sale’
Foreclosures are when the Bank/Lender has taken back a property due to non-payments.
Notice of Default or ‘NOD’ is when the payments have been late and the NOD has been filed from the Lender… NOT all Notice of Defaults go into Foreclosure.
What are key things that you need to know if you want to BUY a foreclosure or Short Sale property? --- First, know that the market is full of foreclosures and short sales right now. And YES, you can get some great properties. Unfortunately, many of these properties… well how do I say this nicely… okay have been trashed… or at least neglected during the pre-foreclosure process. Some need just a little TLC (paint & carpet) other need more work. Most are Sold AS IS, so it is important that a buyer pays for a Home Inspection, by a qualified home inspection company, your Realtor (that would be me)… are able to provide a few recommendations of those companies. If you want to put a little ‘sweat equity’ into a property and get started on building your equity in your own home… this is a GREAT time to do that…..
Want to know a secret…..???..... we are starting to see a pick up in the market… there has been more activity in the past 30 days then in the past 6-9 months… we are seeing more multiple offers on these “killer deals” of foreclosures/short sales. Know that you are dealing with the BANK not negotiating with the Owner, they can take much longer to set an answer and can stop it at any time, even up to the end just before closing. So yes, there are risks but for some buyers it is a good move.
To learn more and find out if it is a GOOD option for you.. call and talk with your Realtor (remember that would be ME)
It is just a house… YOU make it a home!!!
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