Short Sale Properties – opportunity or obstacle?
Mike and I went to a short sale – foreclosure seminar yesterday hosted by Metro Realty . Orange County is experiencing quite a few of these “Short Sale” transactions lately, and we wanted to find out more about the process so you could get the scoop.
What is a Short Sale? Short Sales occur when an owner needs to sell a property, yet they cannot sell the property for what they have borrowed on it. This means the full mortgage amount cannot be paid off after the sale, thus termed a “short sale”. For example, a condo in Irvine sold for 400K, yet now they need to sell, and can only get 380K.
Short sales add a new variable into the mix…the bank. In order to have your offer on a short sale REALLY accepted, it needs to be approved not only by the seller, but by all parties whom are owed money from the house. This includes homeowners’ associations, the IRS, tax assessor, HELOCS, and any other mortgagors. Many times these parties are more than happy to give you a deal, if it gets them out of the debt.
Who should buy a short sale? NOT investors. Sorry guys, too much liability. First time buyers are a perfect scenario for a short sale purchase. As long as the property is owner occupied, then there is opportunity. Buyers need to know a short sale is not a quick process. Once making an offer, the bank has to see and accept it. They can come back with a counter offer too! Expect the transaction to take at least 45-90 days, so make sure to plan accordingly. There’s lots more to know, so feel free to email us if you have any specifics.
What if you have to be on the selling end? Call us right away. We want to get you in touch with a financial advisor and credit councilor to make sure this is what you should be doing. Short sales are complicated and should not be taken lightly!
Orange County Real Estate Success 
[…] properties has 2+ beds, 2+ baths, and a 2 car garage with the asking price below 400K. Some are Short Sales, but not all. Each property is in a really good first time buyer neighborhood, too. Let us […]
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