Short Sale Buying
Short Sales are becoming more and more frequent. Short Sale buying can help you buy a home under value, even sometimes giving you instant equity.
"Increasingly, lenders are making loans in amounts that become too difficult for borrowers to repay. Given the unparalleled increase in prices for real estate in California during the last few years and the impending economic slow down, many of these borrowers may not be able to fulfill their mortgage obligations. When a borrower is no longer in a position to make the mortgage payments, is facing foreclosure and the current market value of the property--including escrow costs--is less than the loan on the property, the borrower may consider a short sale. This could save the lender the expenses of foreclosure proceedings and from having another REO property on its books. From the borrower's perspective, the short sale prevents having the foreclosure on the borrower's credit history, and releases the borrower from an obligation that he or she can no longer afford.
In essence, a short sale is a sale transaction subject to a lender's approval in which the lender consents to a sale of the security interest for less than what is owed on the note and accepts the proceeds in full satisfaction of the loan amount. A short sale requires much paperwork and preparation on behalf of the borrower. Typically, before applying for a short sale, the seller must have a ready buyer and all the paper work prepared to present to the lender. The buyer of the property must also be prepared for a protracted time period to conclude the purchase of the property."(Graham Holmes)
Call Erica Baxter Short Sale Specialist 800.208.3443
More info.