Real Estate Short Sale – A real estate short sale occurs when there is an outstanding obligation against the property. This is the sale of the real estate that gains profits lesser than the amount owed on the property. Often, it is an alternative to repossession.
Real Estate Short Sale – However, it can pay off your loans . Short sale is considered a win-win situation. Realtors, mortgagees, and lenders can get benefits from it. The mortgagees can able to sell the property. However, the realtors can receive a commission from the property being sold. The following are the steps to a real estate short sale that could help you.
1. Know the Property Value When selling property through reliable broker, the broker will give you an estimated market value. However, if you sell the property by yourself, you have to perform a market analysis surrounding your area. Buying a short sale home is not an easy endeavor.
2. Determine the Costs of the Property The selling costs of the property must be computed properly. If you hire a real estate agent or broker, this person will give an approximate closing costs. If you are selling your home by yourself, contact the local real estate lawyer and make some clarification about the process.
3. Determine the Value of the Property The value of the property is the total purchase price including all other expenses.
4. Do the Calculations Do the calculations by subtracting the total value of the property from the sales proceeds.
5. Contact the Lenders There are many ways to contact the lenders. Speak with a customer service representative, manager or supervisor of the department regarding the issue.
6. Ask Lenders about the Short Sale Procedure There are lenders around that are willing to help you. This can reduce the value of the property or you can get other favorable arrangements. However, some lenders will inform you that you are responsible of your own debt.
7. Property Selling This is the final step when it comes to short sale. However, perform this when you are familiar with the other steps provided above.
The Benefits of a Short Sale Real Estate
- Low Price
Home repossession can be overwhelming especially to the homeowners. However, this is not a problem in real estate short sale. Most of the properties are fixer-uppers. The buyers can avail a lower price if they are willing to do the renovations on the property.
- Favorable Terms of Financing
Buying a short sale requires bank agreement to sell the property less than its current loan value. Short sales represent the inexpensive bank alternatives.
- Homeowners Cooperation
Many sellers choose real estate short sale since it can save buyers from home repossession issues. The benefit of short sale in sellers is the less damage of the credit report. Short sale helps you purchase a new house. If you are interested about the real estate short sale, digest the information above. You can search on the Internet for other information to make your life easy.