Definition of Short Sale: When a homeowner can no longer make the house mortgage payments and he needs to sell the property but like so many today finds his house is underwater and he cannot sell it for what he owes. He then tries to sell it for less than he owes and looks to the lender to agree to this amount and let him out of the mortgage for less then they owe.
The short sale doesn’t start until there is an offer from a buyer and an agreement from the seller with a signed purchase agreement. Then and only then will the bank/lender look at the property and begin to qualify the seller to see if they will do a short sale
The seller of a House in a Short Sale or a condo for that matter must go through a rigid qualifications procedure before the bank will even consider doing a short sale. Keep in mind just because a homeowner thinks he cannot afford to make payments or pay off the loan doesn’t mean the bank has to agree with them
Who are you contracting with when buying the short sale property, the bank or the owner of the home?
When you purchase a short sale you are making a contract with the seller of the house not the bank. All terms of the contract are binding and are exactly the same as a regular transaction except for one important item. The contract is not binding on either party and there are no penalties if the contract isn’t performed on if the bank does not agree to the contract. The bank/lender has final say.
These few points are only the tip of the iceberg of what you should know in purchasing a short saleIf you would like to read up on short sales here is the link of an in depth article on Wikipedia; Short sales in Real Estate
Please call me at any time 310.505.5571 or [email protected] to see why we are the experts in a Short Sales in West LA
About Robert Schmalz , Cal Lic. Real Estate Broker
BRE #01813025 - DBA "West Los Angeles Real Estate Group"
I am Bob Schmalz a California Licensed Real Estate Broker, I am the founder and owner of West Los Angeles Real Estate Group, handling all Real Estate needs from residential to investments To name a few of the cities we cover in West Los Angeles; Beverly Hills, Santa Monica, Brentwood , Pacific Palisades and Malibu are some of the most popular. Our beliefs are that our clients should have the knowledge they need to make decisions in there Real Estate Goals. In this way our clients helps us make the right decisions for themselves.
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"Bob both bought and sold a house for me. You could not ask for a better deal maker.
In this day and age of the internet and Redfin, we don't necessarily need a broker to find us properties. Bob, however, did find me my dream home. His advice on the buying strategy was out of this world. He convinced the seller and his agent to accept my offer before the open house. The seller had three other offers before the open house, but Bob sold them on me by putting together a full package including my resume to convince them that I was a serious buyer who would be able to close with no issues. The open house came and the seller received 10 backup offers. If he hadn't advised me on the strategy we used, I would have been in the middle of a bidding war on the house. And to cap it off, the accepted offer was below their listing price.
Bob knows the West LA market very well, but much more importantly, is one of the best salesman I've ever met. When you are negotiating, you would not want him on the other side."