When a homeowner owes more on their house than its value, it's becoming increasingly common for the lender to agree to a short sale, whereby the lender consents to release the mortgage for an amount less than what's owed. If you have any questions about real estate in Alameda County Ca, contact me here or e-mail me.
Can I get a bargain on a short sale?
The short answer is "sometimes". Most people hear the term "short sale" and automatically think of a seller that is in trouble and needing to sell their house fast 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. More commonly, a lender may consider a short sale even if the seller is current with their mortgage, but property values have depreciated. In these cases the discounted price may in fact be consistent with true market values, not below.
What's involved in buying a short sale?
Always do your research before making any offers. Using an experienced real estate agent from ReMax Active Realty to help you research a property will help you make educated decisions. We can help reveal to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Finding this info can help you make a decision about how much to offer.
Get a real estate agent with short sale knowledge. The real estate agents at Remax Active Realty can assist you in expediting the transaction and make certain you're protected. Don't let inexperience delay the closing process. Let our experience and knowledge work for you.
Even in the best of situations and with an experienced real estate agent, buying a short sale property will probably take longer than a typical real estate transaction. Be informed that a majority of short sales will not close in less than 30 days. Remember that you're not only getting approval from the seller, but the lender must also agree to the sale terms. Commonly, your offer will go before 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 sell the property "as is" which means the lender won't be paying for repairs. Make sure to reserve the right to have the property inspected for pests, HVAC, electrical, and other critical areas. At ReMax Active Realty when we write an offer, we're looking out for your interests first and foremost and will always suggest that you make your offer contingent upon the inspection results.
If you are ready to buy, whether it's a short sale or a typical home sale, Bruce J. Joffe of ReMax Active Realty is available for you. Apply our experience and knowledge of real estate to feel confident you are getting a fair deal and remain protected during the complete transaction.
REMAX ACTIVE REALTY 4056 Decoto Road Fremont, Ca. 94555
