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In plain english please- I am interested in purchasing a home that is listed as a short sale-
I was told the following:
- it's a great deal
- it take a really long time for a short sale offer to be accepted
- realtors don't like these deals as they don't always get paid
- you have to have impeccable credit to buy a short sale home
- Someone can yank the house out from under you up until closing
I'm not a realtor but I have been reading a lot about it on here. Basically, a short sale can or can not be a great deal... it means the sellers are going to the bank to approve a sale for less than the mortgage is and trying to get the bank to forgive the rest of it... or they are going to put together a separate payment plan. The reason I say it may or may not be a great deal is because it's a short sale based on whatever the mortgage was... which means the person could have bought at the peak and even as a short sale it's higher than others in the neighborhood.
It can take awhile for the bank to approve a short sale, I've heard of that happening. Your realtor should be able to get in touch with someone to see how far the process of approval has already gone. I have seen some where they are advertising a short sale but they haven't spoken to the bank about it yet, and others where they have gotten approval for a short sale and a payment plan but only if the house sells for X dollars.
I'm not sure of the rest, but I'm sure some of the realtors here can tell you.
In plain english please- I am interested in purchasing a home that is listed as a short sale-
I was told the following:
- it's a great deal
- it take a really long time for a short sale offer to be accepted
- realtors don't like these deals as they don't always get paid
- you have to have impeccable credit to buy a short sale home
- Someone can yank the house out from under you up until closing
Is it as bad as all that??
1. It's a great deal
NOT necessarily true, make sure you compare the home to others for sale in the are that meet your criteria. Use a buyer's agent that will give you an honest CMA and clearly show you if the short sale property really is a great deal. There are alot of short sales that are over priced.
2. Yes it can take a long time for a shor sale offer to be accepted
3.On the buyer's side for a realtor, they will still get paid, likely just not as much as they would on another property. Banks will typically only accept a short sale offer with a lowered commission set for the agents. And since the Listing agent is doing 90% of the work involved with the short sale, they deserve a higher portion of the commission.
4. You don't necessarily need impeccable credit, as much as you need a solid Pre-approval, money to put down, and an overall strong offer.
5. Once a sales contract is signed no one can yank the property from under you. Once both sign the sales contract the contract dictates what goes on. As long as you follow all the deadlines to the T and close on time, the home is yours. Up until the contract is fully executed/signed by both parties anyone can get the property.
In plain english please- I am interested in purchasing a home that is listed as a short sale-
I was told the following:
- it's a great deal
- it take a really long time for a short sale offer to be accepted
- realtors don't like these deals as they don't always get paid
- you have to have impeccable credit to buy a short sale home
- Someone can yank the house out from under you up until closing
Is it as bad as all that??
A short sale is when the home is worth less than the current mortgage. The owner may or may not be behind on payments but they are asking the bank to take a loss on the difference in what is owed and current worth.
- may or may not be a great deal
-it normally does take longer than usual because you have to wait on a bank
-realtors do get paid on short sales, but they are more difficult for listing agents
-you just need to able to get a loan or have the cash, you don't need "impeccable credit
-not if you have an accepted offer
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