The term short sale or “short sale” has become so fashionable that many real estate buyers, excited by the fame of cheap houses, call the agents saying they want to buy a house that is in “short sale”.
On the other hand, many people who have problems with their homes also say that have stopped paying because they want to make the famous “short sale” or short sale. For them it is a way to avoid foreclosure.
Short selling is a relatively new option, because it is not used for some years. This implies a call also quick sale (a term that has nothing to do with reality) is that the property be sold at a lower price than they owe the bank, sometimes considerably lower.
What you should know if you are considering a short sale
- You must assess whether that is the best choice for you. Not always is, there may be other options.
- Orient yourself first about the impact on your credit. Asked how long to go before you can buy another home.
- Notifies the bank that holds the mortgage as soon have trouble paying. Do not expect too late or you have several payments in arrears.
- The bank is who will tell you if you qualify for the “short sale”. When evaluating your case will take into account the debt of the property, your personal and financial situation, if that’s your main property and how many properties you have, if you have more than one.
- Find out about the costs have as a seller. Asks who will assume debts for maintenance concept, among others, and closing costs. Usually buyers closing costs and ask you whether the bank is willing to pay. In some cases, sellers have to bring money to the closing table.
Advantages of the short sale for sellers
- If approved you avoid having a foreclosure or execution “foreclosure”.
- Once the process is completed will feel relief at not having high mortgage payments you could not meet.
- Your credit could be less affected than with an execution. Consult a financial specialist.
- In many cases you can live on the property when it completes the “short sale”.
Disadvantages of short sale for sellers
- Contrary to what you might think from the name, short sales are not usually done in a short time. The approval may take months.
- Once the bank gives approval to the owner that the house for sale is set, you have to find a buyer and submit the offer to the bank. That stage of the transaction can take months and be very frustrating for you and for the buyer. If the offer is not accepted, or if the buyer gets tired of waiting, you have to start the process again.
- You can fall into the hands of fatuous traders who may deceive with false promises to solve your situation. Do not sign any document without your bearings, including transfer of title to your property and check references or credentials realtor if you use one that will handle your “short sales”, i.e. list the property for sale.
- You cannot receive money from the sale of property or equipment that are within it. Remember that the bank is selling the house for much less money than the original value paid you to buy it, which to them means they are missing, i.e. no one wins in a transaction “short sale” except the buyer fail of the low market price.