Basics on Short Sale Home Purchase
Due to the financial and credit collapse of 2008, foreclosures rates hit an all time historical high. Real estate values plummetted 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 Sales
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 a 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.
Negative 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. You need to be super sensitive in dealing with sellers of short sale homes.
How to do a Short Sale Home Purchase
Short sale home purchase buyers should get a preapproval letter from a mortgage broker. They should expect a lot of resistance and not expect good cooperation because they are dealing with the mortgage lender for approvals. Make sure your mortgage broker has all of your financials and have your mortgage application completed so when the short sale mortgage lender gives you the green light, everything is in order you try to close on the home as soon as possible without any complications.
Writing up a offer on a Short Sale Home Purchase
You can forget in asking for any conditions or contingencies because the bank’s mission is to get rid of the property as soon as possible. Be ready to give an offer with the home being in an as is condition. If you are interested in a short sale home purchase loan, please contact me at 262-716-8151 or email me at email@example.com or visit me at www.gustancho.com .
Gustan Cho NMLS ID 873293
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