what is a short sale
We all know that bank owned homes are properties that have reverted to the bank’s ownership after an unsuccessful foreclosure auction. Many people mistakenly think that every property in danger of foreclosure ultimately ends as an REO property. However, there is still one thing that a borrower could do when confronted with the possibility of a foreclosure – a short sale.
In particular, a what is a short sale allows the troubled homeowners in the area to sell their property for less than what they owe to the bank and to use the proceeds from this sale to cover their debts. But still, many think that the homeowner will always be at the losing end of a short sale deal, because of the fact that the property is generally sold lower than its actual market value. What many people neglects to see is that there are ways that a property owner could do in order to get the maximum price for his property
Maximizing the Value of Your Property
The first thing that a homeowner should do before entering into a short sale is to determine the actual value of his property. A Real Estate agent can provide an estimate, but it is also advisable that you do your own market analysis of properties, particularly in your neighborhood.
You actually have a choice of either selling your house by yourself or engaging the services of a broker. The latter can give you a rundown of closing costs, but the essential thing to do is to add these all up and take them into consideration when pricing the property.
Of course, you will need to know how much you actually owe to the bank. Get this information as soon as possible so that you will know how much you will need to rise in order to settle your obligations with the bank.
In doing a Los Angeles short sale, doing the numbers is a very important task. You also have to accept that it is typical to get a negative sum if you subtract your debt from your selling price. While you may not be able to do something about, you can, however, maximize the value of your property.
This is why it is important that you keep your home generally well-kept throughout the entire process. Remember that prospective buyers would want to see and visit your house to inspect your property. Do not show that you are desperate for a quick sale – this will only further lower your price and embolden your buyer to offer an unreasonable low price. Be courteous and earn their respect by showing them that you are still dignified despite the unfortunate circumstance that led them there. This will allow you to gain a ground when negotiating with your potential buyers.
Finally, take note of the fact that banks dislike a large inventory of bank owned homes; hence, they will be supportive of any attempts from you to enter into a short sale. Ask them if they can somehow reduce the amount of your loan obligation so that you can have a more realizable amount to obtain.
There are two types of what is a short sale. One deals with stocks and the other with real estate. This article will deal with the real estate short sale. The real estate short sale can be looked at from the seller’s perspective, the buyer’s perspective and the bank’s perspective. All three parties will have a say in the short sale process.
If you own your house and are having a difficult time paying the payments then you might want to consider a short sale. Typically when a home owner is facing a foreclosure the bank will consider a short sale. A short sale is when the bank takes less than what is owed on the house. For example, if you owe $100,000 dollars on your home and you are facing foreclosure the bank might take $90,000 dollars and consider the loan paid. Why would the bank consider a short sale? Well if the bank continues to foreclose the house they will have to sell the home. This means finding a real estate agent, fixing the property and waiting possible months before it sells. Sometimes it is easier for the bank to sell the property to an investor for a quick sale. The advantage to the seller is that there is no foreclosure on their credit report.
If you are looking to buy a home at a discount then searching for a home in foreclosure is a good idea. Once you find a home that you like then approach the owners with a letter stating you would like to buy their home. Once you meet the owners ask them to ask their bank if they are willing to sell the home on a short sale. Typically the owners have to be insolvent and have had a hardship in order to sell the home short. You can also contact a real estate agent and let them know that you are interested in buying a home on a short sale. They can look at the MLS listings and find the homes in la that are available.
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