This BLOG On Short Sale Home Purchase Process For Illinois Home Buyers Was UPDATED On December 4th, 2018
- Due to the financial and credit collapse of 2008, foreclosures rates hit an all time historical high
- Real estate values plummeted more than 50% or more in some areas in the United States
- Millions of Americans lost their jobs and were forced into bankruptcy
- Million of homeowners turned to short sales to unload the burden of their mortgage payment they could no longer afford
In this article, we will cover and discuss the Purchase Process For Illinois Home Buyers on short sale properties.
Sellers Of Short Sale Homes
Short sales will definitely put a black mark on the selling homeowners credit report. They will see a drop of their scores but will relieve the selling short sale homeowner from a deficit judgment on the house.
- Short sale home purchase deals are a great way for a home purchaser to take advantage of a home purchase at bargain-basement prices
What Is A Short Sale?
A short sale is the sale of a house that needs the cooperation of both the mortgage lender and the home seller.
- On a short sale, the seller is trying to sell their home for a lower value than the amount of the mortgage loan owed to the lender:
- They need the lender’s blessing and sign off
- The lender will definitely take a loss
- But also saves the lender the trouble in filing foreclosure proceedings
Benefits Of Buying Short Sale Homes
A short sale buyer can capitalize on homes that are selling via short sale.
- However, nothing is that easy
- Short sale home purchase buyers might find the home in shambles
- Or might be dealing with hostile sellers
Negatives Of Short Sale Home Purchase
Buyers need to realize that short sale homeowners could be very emotional. This is because they are losing their homes.
- Probability is that they do not want to lose their home but are forced to
- This is because they can no longer afford it
- A short sale is a better alternative than being forced out by the county sheriff via a foreclosure and/or sheriff’s sale
- Home buyers need to be super-sensitive in dealing with sellers of short sale homes
How To Do Short Sale Purchase
Short sale home buyers should get a pre-approval letter from a mortgage loan originator.
- They should expect a lot of resistance and at times banks take their time
- Home buyers of short sale home purchase should set proper expectations
- They should realize that the short sale home buying process can take anywhere between three to six months versus 30 to 60 days on traditional home purchases
- Many times, lenders of short sale homes do not fully cooperate
- All final decisions come by the lender of the property:
- Not the homeowner selling the short sale home
- Fully cooperate with loan officer processing and underwriting your mortgage loan
- Make sure to provide all of your financials requested timely
- Loan officers will go over mortgage application and documents required to process mortgage
- So when the short sale lender gives the green light, everything is in order
- Try to close on the home as soon as possible without any complications
Writing Up Short Sale Home Purchase Offer
Most short sale home purchase transactions are in as-is condition so be prepared to do any work that needs to be done to pass home appraisal inspection. To learn more about short sale home purchase mortgages, contact us at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com .
