Buyers will find extraordinary garage-priced homes on this market because banks are seizing some homes in the area, but long before the trustee's sale, there will be opportunities to buy homes through the through a process called "flash sale."
What is a short sale? A short sale is the sale of a foreclosed home at a lower price than the existing mortgage balance, which can only occur with the full cooperation of the bank holding the property. ;mortgage. The process is very involved, and frankly, it is a rare event, or at least it has been. We will unduly see more short sales in the coming year.
The legal and procedural hurdles for the careless are so important that I would not recommend that a buyer try to buy a house through a short sale without the help professional of an experienced person. By the way, most lawyers and most real estate agents are not experienced in this area. Due diligence in finding someone who can help you is essential to your success. Let me take stock this way: if you find someone who really knows how to help you buy a home out of foreclosure, you'll be ahead of the crowd of buyers, and you can be the only buyer legitimate to the extent that the bank is concerned.
Briefly, here is the process:
- Finding and identifying houses that are in default (even before formal non-judicial foreclosure begins);
- Of course, also look for homes that are foreclosed with a lot of time before the sale of the trustee (you need several weeks and probably a few months to coordinate, so if the trustee's sale is around the corner, it is too late to make a short sale);
- Refine this short list to the one you would like to buy like yours;
- Make an accurate CMA (Comparative Market Analysis) using "sold" homes with the same or very similar characteristics (you will need to access a good database, like the local MLS) ;
- Find out the exact mortgage balance and the status of default or foreclosure;
- Find out if there is a second or third mortgage (trap for the unwary);
- Discover if there are any other privileges (tax liens, mechanic privilege, work privilege, state liens, etc.).
- Learn to Speak at the Loss Reduction Department the owner of the mortgage (not always a bank);
- Beware that buying a house in a short sale, which is before a formal foreclosure takes place, cancels no loan or lien subordinate;
- You must know what costs and fees, in addition to the balance of the mortgage loan, can be compromised and by how much (this is derived from the experience);
- Put together a complete package for the holder of the mortgage, which is the key to all this happening. This includes the contract of purchase and sale, and includes a thorough analysis of the house, prices, local market and justification of the offer price (this must be very professional or your offer will be completed without serious consideration, and you must convince the bank that they should sell at your price for you);
- Following through all the parts and details is essential to reach the closing table on a short sale.
Short sales are difficult and complex. While some counter-rich-quick are there preaching that foreclosure buying is the answer to getting rich, foreclosure property buyers through the process of short selling are rare. Buying foreclosure properties is not for beginners. It is full of traps for the unwary.
The purchase of a foreclosure will be one of three experiences: 1.) a stalemate after months of frustration, 2.) a quick way to lose money in reason for major mistakes in the process, or 3.) a great way to choose many shares immediately at the close because the purchase price is lower than the current fair market value of the house.