How to Find a Short Sale
- Contact local real estate offices and get on a list of people interested in short sales.
- Check MLS listings on real estate websites.
- Search courthouse filings for “pre-foreclosures” in the area.
- Select those pre-foreclosure properties that interest you based on their location and other factors.
Are Short Sales public record?
If you opt for a short sale, the consequences on your credit score and credit record are much more mild than they would be for a foreclosure. Foreclosures also stay on public record for 7-10 years while short sales have no obligation to be reported legally, so some banks will not bother to do so.
Can you negotiate the price of a short sale?
Can You Negotiate A Short Sale? It is entirely possible to negotiate a short sale, but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.
How long does it take to buy a short sale?
From that point to the time of short sale approval, the average timeline is about 60 to 90 days. It means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.
How do Realtors do short sales?
A Step-By-Step Guide to the Real Estate Short Sale Process
- Get a Property Valuation Analysis.
- Get a Hardship Letter.
- Contact the Lender for a Short Sale Application.
- Prepare the Sales Contract.
- Assemble the Short Sale Package Together.
- The Loss Mitigator Reviews Your Short Sale Package.
Are short sales cash only?
A short sale is when a home owner sells his or her property for less than the amount owed on their mortgage. In other words, the seller is “short” the cash needed to fully repay the mortgage lender. Typically, the bank or lender agrees to a short sale in order to recoup a portion of the mortgage loan owed to them.
Is a short sale good for the buyer?
Why a short sale can be beneficial
An interested buyer typically makes an offer in line with property values, but the seller is not in a position to accept the offer. The seller’s lender must approve the offer since it is being asked to accept a lesser amount than the total it is owed.
How do banks determine short sale price?
How Can You Price Your Short Sale to Close?
- The short sale bank. Because short sales can take a minimum of three months to close from listing inception, the price should be based on pending sales, which will become the comparable sales at closing.
- The buyer.
- The buyer’s agent.
- The buyer’s lender.
- The seller.
What should I offer on a short sale home?
How to Make a Short Sale Offer
- Offer a Strong Earnest Money Deposit.
- Agree to Put Your Deposit Into a Trust Account.
- Check the Comparable Sales.
- Ask About Competing Offers.
- Don’t Ask for Special Reports or Repairs.
- Give the Bank Some Time.
- Assure the Seller You’ll Wait.
- Agree to Pay the Seller’s Fees.
Why is a short sale bad?
A short sale results when sellers don’t receive enough cash from buyers to pay off their mortgages. Maybe the seller paid too much or borrowed too much for the property to begin with, or the market has dropped so the property’s fair market value is less than the existing mortgage balance.