Friday, June 21, 2013

Information a Buyer Should Know before a Short Sale

A short sale is a method of selling homes that has recently become popular. This method of selling a home occurs when the amount of money owed on the home in question is less than it is worth. Because of the rise of this method for selling homes, many people are now purchasing homes through this method rather than more traditional means. However, there are certain things that a purchaser should be aware of before they choose to make an offer on any house available through this new method. Two of the things that any potential purchaser should know are a real estate agent who has worked with the selling entity before, and how much the homeowner owes on the property itself.

Knowledgable Estate Agent

It is important to have a real estate agent who has dealt with the seller's intermediary before. The seller may have employed a real estate agent of their own, or they may choose to let their lender conduct the process for them. It is important that your own real estate agent have conducted business with the seller's intermediary because that will enable your real estate agent to collect as much information as possible before the transaction. This information is necessary because it will smooth the process of the transaction and provide you with any warnings about problems that may appear along the way.

Amount Owed

One of the pieces of information that a connected real estate agent should be able to uncover is how much the homeowner still owes on their property. A short sale only occurs when the homeowner owes more on the property than the property is worth. The transaction of the house is occurring so that the lender can recoup as much of the home's value as possible in order to pay off the debt. Knowing how much the homeowner owes on the house is crucial to the house’s transaction because that will tell you how much the lender prefers to make back. Because the lender is looking to recover on their own losses, it is likely that they will only accept a certain fraction of the amount they need.

This is a guest post provided for the readers of Giveaway Lady.

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