Are short sales still available?
Are short sales still available?
Although the housing market has slowly recovered since then, short sales are still a go-to for homeowners struggling to keep up with their mortgage payments. In this article, we’ll explain what a short sale is and how it works, as well as the pros and cons of short sales for both the seller and the buyer.
How do I get a list of short sales?
How to Find a Short Sale
- Contact local real estate offices and get on a list of people interested in short sales.
- Check MLS listings on real estate websites.
- Search courthouse filings for “pre-foreclosures” in the area.
- Select those pre-foreclosure properties that interest you based on their location and other factors.
Can a short sale be quick?
For homeowners hoping to avoid foreclosure, one often-effective way is through short sales. Short sale-offered homes can sell quickly, though lenders may take some time to approve such sales. However, lenders often want to close quickly once they approve a buyer’s short sale offer.
Can you make money on a short sale?
A short sale means they won’t earn any profit from the sale of the house – the bank or mortgage lender gets all the sales proceeds.
Can a bank foreclose on a short sale?
Consumer Protection Laws. States have the power to stop banks from foreclosing on homes when a short sale is in progress. This gives homeowners the opportunity to market and sell their homes without worrying that the bank will sell the properties at auction before a short sale can close.
Will a bank accept a short sale offer?
The list price of a short sale home generally has little bearing on the actual price a bank may accept. Just because the seller accepts the offer doesn’t mean the lender will, though.
Why is a short sale bad?
If you’re a seller, a short sale is likely to damage your credit — but not as badly as a foreclosure. You’ll also walk away from your home without a penny from the deal, making it difficult for you to find another place to live. However, a short sale can forestall foreclosure and its negative impact on your credit.
How long can a short sale take?
Be aware the short sale process could take much longer than a traditional home purchase. Even with a qualified agent, it’s not uncommon for short sale transactions to take six months or more to close.
Why are short sales so difficult?
Short sales happen because the loan on the property is larger than the sale price minus all the sale expenses. With a short sale, the seller is asking the bank to take less than the amount owed. The seller’s bank must approve the sale, and this is where the big delays can happen.
How long does it take for a short sale offer to be accepted?
A short sale can take up to six months to be approved because many factors can slow the process down. You might be able to reduce the time it takes to be approved by asking your agent for some information before making an offer.
Why short selling is bad?
A fundamental problem with short selling is the potential for unlimited losses. If you short a stock at $50, the most you could ever make on the transaction is $50. But if the stock goes up to $100, you’ll have to pay $100 to close out the position. There’s no limit on how much money you could lose on a short sale.
Are short sales worth it?
In short, short sales are a good idea if you have plenty of time and money. A short sale buyer may get the property at a reduced price, but the property (in all likelihood) has its share of problems — think “fixer-upper” — and the deal needs to go through considerable red tape to make it happen.