Home owners who are in the pre-foreclosure process are in dire need to short sell their homes. Home owners do not stand to gain any direct monetary profit from the short sale, however if the property sells during the short sale, the homeowner is given the opportunity to walk free without having a foreclosure written into their financial statements. Short selling is intended to be swift; therefore it is customary for lenders to only allow a short sale property to be on the market for four to 12 weeks.
Before carrying out a short sale on a pre-foreclosure property, a home owner should contact their lender’s office and ask to speak to the lender in charge of the short sale department. It may take a couple of days for the lender to get back to you; typically, their phone calls are heavily screened by secretaries. But, when the lender does get back to you, ask whether or not they would be willing to give you a bit more time in order to carry out a short sale. More often than not, the lender will respond positively to the inquiry.
Lenders lose a tremendous amount of money when they are forced to repossess a home. The opportunity of being paid what they are owed and never hearing from you again may seem very attractive to the lender. So, eight times out of ten, you will get approval for a short sale.
Marketing a Real Estate Short Sale
Hiring an experienced real estate agent who has proven to be successful at finding buyers for short sales properties will greatly increase the chance of a seller in distress successfully unloading a short sale home. Due to the gravity of this sale, home owners should put their own real estate marketing tips into action as well as allowing the real estate agent to embark on their own real estate marketing campaign. This will increase the possibility of sale of the house as well because a larger number of people are being targeted.
Buyers of a Short Sale
Short sales aren’t only beneficial to home owners in the pre-foreclosure process; this real estate transaction has the possibility to be beneficial to buyers as well. If the home owner has paid off the majority of their mortgage, the buyer who snags the property is in for a bargain. Typically, lenders will accept an offer which meets or exceeds to amount owed to date on the mortgage by the current homeowner. Buyers are allowed and encouraged to tour the property before deciding whether to place a bid on the home.
However, there is a downside for buyers; the response time. For some reason, lenders tend to take a fairly long amount of time to inform the prospective buyers whether their bid was accepted. Buyers should expect to wait anywhere from three to six weeks to hear back from the lenders. If the home sells great, this means that you are liability free. However, if your property doesn’t sell, at least you know that you did everything in your power to come out of this situation on top.
Jazmin Espinal is a professional freelance writer and the owner of Capital Web Writing, a web content solution for businesses and webmasters. To contact Jazmin or to see samples of her writing, please visit CapitalWebWriting.com.
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