What Is A Short Sale
Whether you are a seller fearing a possible foreclosure, or maybe a buyer interested in buying a short sale home, the short sale process is simple however not easy. Let us start with the basics: What is a short sale? A short sale in real estate is when a financially distressed homeowner sells their property for less than the amount owed on the mortgage. It means that the property is worth less than the owner owes on the property causing a shortage between the payoff and the price of the property. If you are planning to buy a short sale home, it's important that you know what buying a short sale means to a buyer.
What does it mean for the buyer?
Short sales are unpredictable. It needs to be approved by two people: the seller and the bank. First, once the seller decides to sell their home, the seller needs to take your offer on the property. The homeowner is still in control, unlike a foreclosure.
The second step is that the bank has to agree to take less than what they are owed. The bank will be qualifying for the short sale deal. The seller needs to have a valid reason to sell the property short. Does the seller have a hardship? There should also be a financial reason why they can't either pay the mortgage or the difference to what is owed. For example, if you the ability to make up for the shortage, the bank would likely not approve the short sale deal. A short sale is only for owners who have a hardship. Additionally, the bank will have to approve the price. The bank will make sure that the value of the property is reflecting the correct price of the short sale home When buying a home, on the appraisal part of the home buying process if you are taking a mortgage, there will also be someone to be sent out who is looking out for the bank to make sure that the value is in the correct amount.
Buying a short sale property can be a great deal yet can be trying when it comes to patience. If you are looking to move right away or in a short time, a short sale may not be a great option for you as there is a chance that the short sale deal will be denied or rejected by the bank. However, if you have flexibility, a short sale deal can be a great opportunity.
What are the chances of getting a short sale deal done?
You may be wondering the percentage of chance of grabbing a great short sale opportunity. Having a short sales team that is here to help you along the way, makes a huge difference. Your buyer's agent should be an expert when it comes to short sales. Treu Group Real Estate, one of the best real estate agents in Palm Beach County, has done a lot of short sale deals successfully in the past with a 90+% success rate compares to other real estate agents who only have around 40-50% success rate. Experience matters and we can easily spot if a short sale has a great chance of being successful or not.
If you need a short sale expert with a division in Palm Beach County or Martin County. The Treu Group has the experience to get you to the closing table. Whether you are planning to sell your home as a short sale or planning to buy a short sale property, Treu Group Real Estate can help.