SHORT SALES - Anything but "short"Real Estate Foreclosure Assistance & ServicesUpdated on Aug 20, 2010 View more like this | Visit CHARLOTTE, NC | Contact Verus Delta |
SHORT SALES – Anything but “short”
I’ve represented buyers wanting to purchase a short sale and the one thing I always say is, “if you want to purchase a short sale, they are anything but short! Be prepared to wait… and wait… and wait… and wait some more.” In the end, if a buyer is able to close on a short sale, often times it’s a great “deal.”
A short sale is similar to a deed in lieu of foreclosure and occurs when a lender agrees to discount the remaining loan balance in the following manner: subject to the lender’s approval, the borrower sells the mortgaged property for less than the outstanding balance of the loan and cedes all of the proceeds to the lender in full satisfaction of any outstanding mortgage debt.
As a practical matter, a lender will agree to a short sale only when convinced it will result in a smaller financial loss after factoring the cost and time of proceeding with a formal foreclosure. This may happen when the real estate market is a strong buyer’s market, when home housing prices are on a steep decline, or when a lender for legal or practical reasons lacks the ability or desire to obtain a deficiency judgment. However, keep in mind it is often possible for junior lien holders (2nd mortgages, mechanics’ liens, and tax liens) to prevent short sale unless they receive guarantees that their interests will also be protected with the short sale. Often times, this is what holds up the process.
If one is considering buying a short sale property, (or sell one for that matter) there are certain steps to take and procedures to expect. Contact a real estate professional before doing so.
Lake Wylie | Tega Cay | Fort Mill | Charlotte| NC | SC Mark McClaskey | is a licensed real estate broker and Realtor in NC/SC affiliated with Wilkinson and Associates.
704.604.5952 = cell 704.504.5900 = office
verusdelta.com
I’ve represented buyers wanting to purchase a short sale and the one thing I always say is, “if you want to purchase a short sale, they are anything but short! Be prepared to wait… and wait… and wait… and wait some more.” In the end, if a buyer is able to close on a short sale, often times it’s a great “deal.”
A short sale is similar to a deed in lieu of foreclosure and occurs when a lender agrees to discount the remaining loan balance in the following manner: subject to the lender’s approval, the borrower sells the mortgaged property for less than the outstanding balance of the loan and cedes all of the proceeds to the lender in full satisfaction of any outstanding mortgage debt.
As a practical matter, a lender will agree to a short sale only when convinced it will result in a smaller financial loss after factoring the cost and time of proceeding with a formal foreclosure. This may happen when the real estate market is a strong buyer’s market, when home housing prices are on a steep decline, or when a lender for legal or practical reasons lacks the ability or desire to obtain a deficiency judgment. However, keep in mind it is often possible for junior lien holders (2nd mortgages, mechanics’ liens, and tax liens) to prevent short sale unless they receive guarantees that their interests will also be protected with the short sale. Often times, this is what holds up the process.
If one is considering buying a short sale property, (or sell one for that matter) there are certain steps to take and procedures to expect. Contact a real estate professional before doing so.
Lake Wylie | Tega Cay | Fort Mill | Charlotte| NC | SC Mark McClaskey | is a licensed real estate broker and Realtor in NC/SC affiliated with Wilkinson and Associates.
704.604.5952 = cell 704.504.5900 = office
verusdelta.com
