Yes is it true.
You can get a great deal on a short sale.
For those that aren't sure what a short sale is a brief explanation is the bank or investor is willing to take less than what is owed on the property and can most likely, write the loss off their taxes.
Many times if you can be patient, you can get a much better deal on a short sale than a bank owned or foreclosed property.
The key is to be patient and keep looking.
If you are working with an agent make sure they are willing to show you short sale property.
Here are a few questions your agent should ask the listing realtor to find out if they have done their homework or know what they are doing.
o Is the sale approved by the bank or investor? o Has all the required paperwork been submitted to the loss mitigation department? (i.
e.
, hardship letter from the seller, financials substantiating why they are in trouble with the mortgage payments.
) o Have there been any offers on the property? o If so, have any been accepted? o If not, why? (You have to have someone willing to dig deeply and be bold about asking questions of the listing agent or you could be in for a long process.
) o If yes, do you know the banks' "net amount" they are willing to take for the property? o If you know the net amount, you know the purchase price and what the bank is willing to take for the property.
All your agent has to do is put in all the numbers, like realtor commissions, taxes, any liens against the property - sometimes the water has been turned off and the power is off.
You know what I mean.
I have done numerous short sales and some additional tips to keep in mind are things like, is the seller willing to sign at escrow? I have only had this happen once and the seller was angry he was losing the home and wouldn't sign the closing documents because the buyer was able to purchase the home at a huge discount and the bank wouldn't work with him to refinance into an affordable rate.
He eventually signed but what a tense situation! If you are offering on a sale that has had no offers and yours is the first, be patient and set your expectations as such.
It could take a while.
Sometimes it pays off BIG.
You get a great home at a great value and the seller gets to move on with their life and the bank saves the cost of foreclosure and holding costs on the property.
It really can be a win-win for all parties.
You can get a great deal on a short sale.
For those that aren't sure what a short sale is a brief explanation is the bank or investor is willing to take less than what is owed on the property and can most likely, write the loss off their taxes.
Many times if you can be patient, you can get a much better deal on a short sale than a bank owned or foreclosed property.
The key is to be patient and keep looking.
If you are working with an agent make sure they are willing to show you short sale property.
Here are a few questions your agent should ask the listing realtor to find out if they have done their homework or know what they are doing.
o Is the sale approved by the bank or investor? o Has all the required paperwork been submitted to the loss mitigation department? (i.
e.
, hardship letter from the seller, financials substantiating why they are in trouble with the mortgage payments.
) o Have there been any offers on the property? o If so, have any been accepted? o If not, why? (You have to have someone willing to dig deeply and be bold about asking questions of the listing agent or you could be in for a long process.
) o If yes, do you know the banks' "net amount" they are willing to take for the property? o If you know the net amount, you know the purchase price and what the bank is willing to take for the property.
All your agent has to do is put in all the numbers, like realtor commissions, taxes, any liens against the property - sometimes the water has been turned off and the power is off.
You know what I mean.
I have done numerous short sales and some additional tips to keep in mind are things like, is the seller willing to sign at escrow? I have only had this happen once and the seller was angry he was losing the home and wouldn't sign the closing documents because the buyer was able to purchase the home at a huge discount and the bank wouldn't work with him to refinance into an affordable rate.
He eventually signed but what a tense situation! If you are offering on a sale that has had no offers and yours is the first, be patient and set your expectations as such.
It could take a while.
Sometimes it pays off BIG.
You get a great home at a great value and the seller gets to move on with their life and the bank saves the cost of foreclosure and holding costs on the property.
It really can be a win-win for all parties.