Tips In Buying Short Sale Home Purchase Illinois
This BLOG On Short Sale Home Purchase Was UPDATED On June 17, 2017
Buying Short Sale Home Purchase: 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.
Sellers Of Short Sale Homes
Short sales will definitely put a black mark on the selling homeowners credit report and drop 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 mortgage lender so they need the lender’s blessing and sign off.
- The mortgage lender will definitely take a loss but also saves the mortgage lender the trouble in filing foreclosure proceedings.
Benefits Of Short Sale Home Purchase
A short sale home purchase 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 because they are losing their homes.
- Probability is that they do not want to lose their home but are forced to because they can no longer afford it and 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 Home Purchase
Short sale home purchase 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 and 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 and not the homeowner selling the short sale home.
- Fully cooperate with loan officer processing and underwriting your mortgage loan and 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 mortgage lender gives the green light, everything is in order you 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 The Gustan Cho Team at 800-900-8569 or text Gustan Cho at 262-716-8151 or email us at firstname.lastname@example.org .
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