How to Buy a Short Sale Home in Grass Valley and BeyondTo approach a short sale an interested buyer, if investor or home seeker, should first understand the process of a short sale and bear in mind the homeowner’s circumstances.
Short sales are far less common in the U.S. housing market today than a decade ago. The peak years for short sales were 2008 to 2012, during the mortgage crisis. A short-sale can yield a good deal on a property, but it generally takes a certain amount of fortitude and patience, plus a lot of luck. —Bankrate.comHomeowners that are in a short sale situation are financially distressed and emotionally distraught. They are facing the possibility of foreclosure and the bank is in control of the short sale. Mail the seller a letter introducing yourself and expressing your interest in purchasing the property. The letter should be courteous and not a sales pitch, particularly if you are interested in buying a home to live in it. Ask them to phone you to discuss the matter and provide your email address as well.
What to Know about Buying a Short SaleIn the alternative, many short sales have real estate agents representing them. If this is the case, contact the representing agent and ask to see the home. They will know the seller’s circumstances and have experience in dealing with them. So, do the following two things:
- Learn the circumstances of the short sale. When purchasing any property the buyer usually asks why the home is for sale. Though in this case you can be reasonably certain it is financially related, having a complete picture will aid you in your approach and negotiation. Moreover, you should learn how much the seller owes on the property and the difference between it and the home’s true market value.
- Make an offer. After arriving at a purchase offer amount, phone the seller or the seller’s real estate agent and submit your purchase offer. Your purchase offer will be considered by the seller first and if they decide to accept it, will forward your offer to their lender. It is important to remember that although the homeowner is selling the home, the lender controls the process, including offer acceptance which can take nine weeks or more according to an industry study. Moreover, if the offer is approved by the lender closing dates can range from 45 to 60 to 120 days.