A short sale is when a property owner sells their home for less than the amount they owes the mortgage company.
Buying a home that is a short sale is different from buying a property that is actually owned by the bank, known as an REO, or real-estate owned property, or a property that is in foreclosure.
A pre–foreclosure is a property in the process of foreclosure but is still legally owned by the owner. It may or may not be a short sale. A short sale is only when an owner is selling a home worth less than the mortgage owed on the home. Lenders may agree to take a short on the mortgage to release it for sale
Buying a home in a short sale can be a hassle, but it needn’t be. Mainly, it boils down to the bottom line. You will get the property for a substantial discount. Since the lender is eager to continue to get paid back the money it loaned out — it may also offer favorable financing terms. What you need to be certain of is that the seller is working with an attorney who will negotiate with their lender. The way to know if this is the case, is when a fee from the buyer is requested at the closing. This is always disclosed from the outset of negotiations and normally in the region of $3,500 – $4000. It’s a small price to pay to know that the negotiations with the sellers bank is in professional hands and not some shady outfit out to make a quick buck, or even worse if the Realtor listing the property is going to attempt the short sale process on their own. Ask your agent who is negotiating with the sellers lenders, if they don’t know make them ask.
Since the seller plays an active role in the short sale process, you will also have their cooperation. This is not always the case with a property that has gone through foreclosure when the former owners may need to be evicted.
To view the many short sales currently available in the lower Hudson Valley Region of New York. > CLICK HERE
For details on the 3 Bed/3 bath home shown here, just listed at the giveaway price of $110,000. Click Here and call 845-848-2218 for appointments to view.