Buying a Short Sale

Everyone Wins

I believe that all real estate transactions should be a win-win situation. It does not occur a lot of the time, but a successful Short Sale is one of those rare situations where everyone wins.

The Buyer Wins by acquiring the property below market price. While some Short Sales will be bigger bargains than others, nearly all Short Sales will represent a good deal for the buyer.

The Seller Wins by avoiding foreclosure and all the credit damage that goes along with it. The property gets sold, all the loans get paid off and the existing lender pays all the sales costs. In most cases the Seller has no out-of-pocket expenses.

The Mortgage Holder Wins by reducing the loss they absorb to get the delinquent loan off their books. Mortgage companies know that the costs associated with acquiring a property through foreclosure hit their bottom line - hard. To resell the property the mortgage company frequently needs to invest money in clean up and repairs, and they need to pay staff to manage and maintain the property as well. This is precisely why they have set up Loss Mitigation Departments to resolve delinquent mortgages before the foreclosure is complete.

Getting A Short Sale Approved

Short Sale approval takes time. How much time, depends  a lot on how complete and thorough we are with our initial Short Sale request package.

Even if everything is in place and we have a great Short Sale package, some are going to take longer than others. The number of files submitted continues to grow, but the staff to handle them does not. This can cause a delay as well. It is safe to say that most short sales will take between 60-90 days to get approved.

Finding a Short Sale

The best way to find Short Sales in San Luis Obispo area, is to contact me. As a professional REALTOR®, I deal with many other agents and lenders who know about these homes. I also use the MLS and other tools to find these properties for you. Many real estate investors, as well as a large number of bargain seeking homeowners have turned to Short Sales as the best way to buy real estate at a big discount.

Many systems are out there to help you buy Short Sales and Foreclosures on your own, but why not use an REALTOR® whose job it is to handles these kind of transactions. Especially when we do it for FREE! The best way to purchase Short Sales is to find properties that have already been qualified and have a high likelihood of lender approval? It sure can’t hurt to get information on Short Sale properties on which the file is already submitted for approval.

Click here to receive email updates of available Short Sales on the market

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Why Do Short Sales Work?

For the mortgage holder there are real advantages to getting the property sold, even at a discount, while the borrower is still in the home. The costs to maintain the property are paid by the borrower and the borrower has an incentive to keep the property in good shape.

The foreclosure process can get very unpleasant, particularly towards the end of the process. Borrowers have been known to remove built-in appliances, cabinets and plumbing fixtures on their way out.

In the end, it’s usually to the mortgage holder’s financial advantage to accept a short Sale as opposed to completing the foreclosure.