The term short sale refers to a situation where a Anaheim Hills real estate is marketed for less than the homeowner’s outstanding balance on the mortgage. Sellers in this predicament are trying to avoid a foreclosure. In some instances, a seller may have already defaulted on the mortgage.
Don’t be fooled by the low market price of Anaheim Hills real estate-homes for sale in this situation since they aren’t always the best financial deal. The seller could have bought the home at the high point of the cycle and paid more than they should have, or the current real estate market may have forced property values to take a nose dive. As a homebuyer, you also need to be aware of extra costs not included in the properties selling price.
Don’t get too excited if a seller accepts your offer immediately. You still need to wait and see if the mortgage lender will approve your offer, notably if they’ll be taking a tremendous loss from the sale. The bank must consider the advantages of a short sale versus allowing the property to foreclose.
This process could drag on for several months with no guarantee the lender will take your deal, especially if the property has been listed and marketed at an unreasonably low price far below the outstanding balance.
If after weighing all the pros and cons of buying this type of Anaheim Hills real estate-homes for sale, you still decide to pursue one, it’s best to select a Anaheim Hills Realtor who’s experienced in dealing with these type of properties. Your agent should do some research before you make an offer. It’s imperative you know what the seller owes on the home; if it’s a lot higher than what you’re willing to pay, most likely the bank will deny your offer.
Your agent will also need to verify if there’s more than one loan. If there is, you’ll need the cooperation of each lender in agreeing to accept a payoff for less than the outstanding balance of their particular loan. With more than one lender, it becomes more difficult to negotiate a successful deal as all parties want to receive as much compensation as possible. To research how many lenders there are for a particular property, ask your real estate agent to retrieve the deed on the property.
One important step you don’t want to skip is having your agent speak with the seller’s agent about what short sale preparations have already been completed. A mortgage lender will only accept a short sale situation if they can verify a seller is undergoing severe financial hardship. Even though you ultimately need a lender’s final approval, you want to be sure the seller has taken proactive steps to prepare the bank for a short sale situation. Make sure the seller has confirmed the lender will accept a short sale. Unless you prefer not to view other properties, you don’t want to waste precious time waiting on an approval from a lender when the odds are slim they’ll accept it.
For more information on Anaheim Hills real estate-homes for sale, give me a call today!
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