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@example.com 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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"Plain and simple, we wouldn't have our home if it weren't for Bob. My wife and I were first-time homebuyers, and Bob helped us through the process every step of the way. It didn't matter that our price range was on the low side, given the LA market - Bob treated us like VIP clients the whole way through. He worked with us for over four months, sending us listings every week, going out with us to see several each Saturday or Sunday, always with a smile on his face and the most helpful advice. I was concerned that he might lose patience with us, because we were very particular about what we wanted, but he made it a point to make sure we knew that we were the customers, and that we called the shots about this very important purchase. That said, he protected us from a couple of potentially bad decisions. He actually steered us away from a couple of places with higher listing prices (and therefore higher commissions) than what we eventually bought, because, in his words, they were "money pits" that would cost us too much in remodeling, etc.
When we finally found the perfect place, Bob knew just how to close the deal and helped us with every step, from the initial bid to renegotiations for repair costs to working with escrow. And we ended up getting a very good deal on this place - it's now worth considerably more than what we paid! Bob was friendly and humorous the whole way through, and he ultimately made what could be a stressful process a really enjoyable experience. Thanks, Bob!