Short Sale Myths and How It Can Help You?
Now a day, the latest marketing buzz in real estate marketing is Short Sale. The main reason of it is people looking for distressed property with a profitable deal. In entire process, you must encounter some terminologies like short sale, foreclosure and real estate owned. Here is a brief description about them.
Short Sales – properties sold for less than the balance
Foreclosure – properties sold by financial organizations in public auctions
Real Estate Owned (REO) – Financial organizations such as – bank, owned foreclosed properties.
Now the next thing that you have to clarify before going move forward is what is short sale?
Short sale means, where a real estate owner sell his / her property more on their mortgage value usually, in all cases, seller asks for financial institutions to forgive the deficiency (the difference between sellers owes and the buyers willing to buy the property).
Will all financial institution allow the owner to short sale? All major financial institutions including banks also want to avoid foreclosure too. A foreclosure involves money time for financial institutions as well as it is not the profitable Del for them if the unhappy buyer leaves the property in damaged condition. Short sale simply prevent banks to prevent such kind of loses.
However, short sale is considered a bad business practice or similar to a nightmare story. But it is not true for all cases. Surprisingly you’ll find more success story than failure. Here are some most common myths about short sale.
- Short Sale Is Over Valued: in some cases, some agents list the property under current market value. By this way, they attract customers. But bank will review the price and set a standard price about 85% of current market value.
- Lenders May Not Accept A Large Reduction: remember that, lenders will perform their own research and fix the price, a caution for sellers don’t get frustrated, to see that the price will reduce 50% or more.
- Benefits For Buyers – A short sale service can give him/her opportunity to purchase an affordable home. Using this, they can own a house with lower and affordable mortgage payment.
- Benefits for Short Sale Specialists – the main source of income of a short sale specialist is earning money from commission. The commission earned from struggling homeowner. To be very frank in some markets, a short sale is one of the viable marketing options for real estate market. Additionally, it is a powerful tool in difficult economical recession.
Finally, how long a short sale will take? Usually, a short sale may not require couple of moths. Some inexperienced and less knowledgeable professionals will take very long time to get approval. The truth is the entire process do not requires long time. A professional and knowledgeable professional will do it quickly without any hassle. Normally, the short sale procedure will not take time more than 60 days from the time of contract. Undoubtedly, the whole process is complicated and requires special knowledge and skill set; only an intelligent, professional and knowledgeable short sale specialist can perform the deal in a timely manner.
A Short Sale can be an excellent solution for homeowners who must sell and owe more on their homes than what the home is worth. Unfortunately, a number of myths about Short Sales have developed, and it is important to understand the reality of the process should you find it meets your current needs. We are Short sales in charlotte NC. We offer Short sale information.
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