It’s not uncommon today for homes to be sold for less than the mortgage owed. A large percentage of all home sales in our area are short sales. When homeowners decide they cannot keep the home, they offer it for sale to avoid foreclosure. Instead of the seller making the sales price decision it is the bank that holds the note accepting the sales price. This can be challenging as the bank is deciding what loss will be acceptable.
Short sale properties have challenges. Many need maintenance, upgrades or just minor TLC. The contract price must be negotiated with the bank and this can take longer than other transactions. Patience is usually a must. These challenges provide opportunity in this buyer’s market.
Homebuyers need programs that work in this market. Government programs like FHA, VA and USDA are the best tools in this market of limited cash for closing, credit challenges and properties needing rehabilitation and TLC. Our mini rehab loan is perfect to help buyers secure the home purchase with a mortgage that provides funds for these repairs, upgrades and sprucing up. Close on your home purchase and the funds for improvement are held in escrow until the work is completed. FHA, VA and USDA provide programs for buying with limited funds at the most affordable rates. These are government insured loans. Ask your mortgage planner for details or apply on this site.
Specialized real estate agents can assist you. We can point you to agents that specialize in short sales in the areas of your home search. Let us know if you need a referral.
