A short sale is a process in the which the lender and the borrower (when he defaults on his mortgage) sign the agreement to sell the house before the foreclosure occurs. The short sale is a mean by which the lender obtains the remaining debt owed by the homeowner. The homeowner needs to get the approval from the lender to proceed with the short sale.
However, it varies from lender to lender whether he approves the short sale or not but it is beneficial for both. It helps the homeowners to stop foreclosure in Houston and the lender to obtain the remaining debt and to save the costs of the mortgage.
Furthermore, the short sale properties are a great attraction for the house buyers and the real estate investors. It is mainly because of the reason that such properties are sold at a price less than they are worth for. So, it is a great opportunity for the investors to make profits and for homeowners to get a house at an affordable price. If you are also planning to buy a house for you, a short sale property would be a good option but here we are mentioning some facts and tips that you need to know before you buy a short sale.
Number of banks owning loan affect the deal
In the case, the seller has the loan owned by two banks (instead of one), the difficulty of approving the short sale increases. This situation is not under the control of buyer or seller; it just depends on the willingness of the banks involved. So, as a buyer you need to know the number of banks owning the loan. The short will be buyer-friendly in the case it is owned by a single bank.
It is the seller and agent who set the price
The price of a short sale property is decided by the seller and the Houston short sale agent. And, normally, this price is set as low to attract the maximum buyers. Though the bank is unaware of the asked price in most of the cases, it has the final say whether the offer would be acceptable or not.
You should not rely on a single property
Short sales are not “short” in most of the cases; the process can be longer. So, if you are looking to buy as soon as possible, you should not rely on a single property. You should continue the search for finding other better options.
Short sales with approved prices are sold quickly
The houses whose prices have already approved by the bank are sold quickly. So, you must look for the approved short sales. This kind of short sale is highly desirable who are interested in the quick purchase.
Buyers need to close on time
Being a buyer, you must be aware that short sales are sold quickly as compared to other properties. Not only that, they also demand to close on time. So, when you start looking for the short sales, you must be ready to close the deal on time.
" A short sale is a great opportunity for finding a new home at an attractive price and a good option for stopping foreclosure, however, it can also be a major headache if it lasts for months. It does not mean that it is difficult to buy a short sale but you need to take into consideration the above-given factors for making it successful. "
Furthermore, the short sale properties are a great attraction for the house buyers and the real estate investors. It is mainly because of the reason that such properties are sold at a price less than they are worth for. So, it is a great opportunity for the investors to make profits and for homeowners to get a house at an affordable price. If you are also planning to buy a house for you, a short sale property would be a good option but here we are mentioning some facts and tips that you need to know before you buy a short sale.
Number of banks owning loan affect the deal
In the case, the seller has the loan owned by two banks (instead of one), the difficulty of approving the short sale increases. This situation is not under the control of buyer or seller; it just depends on the willingness of the banks involved. So, as a buyer you need to know the number of banks owning the loan. The short will be buyer-friendly in the case it is owned by a single bank.
It is the seller and agent who set the price
The price of a short sale property is decided by the seller and the Houston short sale agent. And, normally, this price is set as low to attract the maximum buyers. Though the bank is unaware of the asked price in most of the cases, it has the final say whether the offer would be acceptable or not.
You should not rely on a single property
Short sales are not “short” in most of the cases; the process can be longer. So, if you are looking to buy as soon as possible, you should not rely on a single property. You should continue the search for finding other better options.
Short sales with approved prices are sold quickly
The houses whose prices have already approved by the bank are sold quickly. So, you must look for the approved short sales. This kind of short sale is highly desirable who are interested in the quick purchase.
Buyers need to close on time
Being a buyer, you must be aware that short sales are sold quickly as compared to other properties. Not only that, they also demand to close on time. So, when you start looking for the short sales, you must be ready to close the deal on time.
" A short sale is a great opportunity for finding a new home at an attractive price and a good option for stopping foreclosure, however, it can also be a major headache if it lasts for months. It does not mean that it is difficult to buy a short sale but you need to take into consideration the above-given factors for making it successful. "
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