The Columbus Team
Simply put, a short sale is a home sale that is short of funds.
The homeowner is behind on their mortgage payments. There could be many reasons: loss of a job, bankruptcy, medical bills, etc. In today’s world he/she often can’t afford to sell the home because the home’s value is less than the mortgage payoff.
So, said homeowner goes to the lender and asks permission to sell the home for an amount that will not fulfill the payoff amount. The bank has to agree to this, since the bank will be taking a loss once the home is sold.
The good/bad for sellers are they can get out of a bad financial situation, but they will have a definite drop in their credit score. The bank wins because they get most of their money and do not have to foreclose and take over ownership of the property. A home buyer wins by buying a home that has a great selling price.
There are several things a savvy home buyer needs to know about a short sale:
- The property is sold ‘as-is’- any repairs or problems becomes the buyer’s future headache.
- These transactions are often long and delayed. Anticipate a roller-coaster ride to closing.
- While the seller’s bank has agreed to consider a short sale, this is frequently only a verbal discussion and there’s no guarantee the bank will agree to your price. (See number #2 above.) Check to see if the seller/lender has completed their short sale process and things are in writing.
- If there are two mortgages involved (and possibly two lenders), double the issues/process times two.
Since the flood of short sale homes (that started in 2009) has abated, many kinks have been worked out and the process has become smoother. Talk to your Columbus Team Realtor and lender, who can offer further advice and details to assure a smooth transaction.
Sellers: need to know more about the short sale process? Follow that link and call the Columbus Team today at 614.888.6100. We’re experts at handling home sales that are ‘short of funds’ in today’s market! It’s in your best interest to work with a real estate agent who has extensive experience with short sales.
Further Reading
Unveiling Ohio Homebuyers Plus: A Savings Plan for Ohioans
#Buyer Info,
#First Time Homebuyers,
Announcing the official launch of the Ohio Homebuyers Plus Savings Plan—a game-changer designed to pave the way for tax-savvy homeownership in the Buckeye State.
Why List Your Home for the Holidays?
#Seller Info
Many people consider taking their homes off the market over the holidays or decide to wait until the New Year to list their home. Here are 6 reasons that suggest the holidays may be the perfect time to go into contract on your property!
Advice for First-Time Homebuyers
#Buyer Info,
#First Time Homebuyers,
Buying your first house can be a rollercoaster of emotions. To guide you through this exciting process, check our expert advice for first-time homebuyers.
Unveiling Ohio Homebuyers Plus: A Savings Plan for Ohioans
Announcing the official launch of the Ohio Homebuyers Plus Savings Plan—a game-changer designed to pave the way for tax-savvy homeownership in the Buckeye State.
Why List Your Home for the Holidays?
Many people consider taking their homes off the market over the holidays or decide to wait until the New Year to list their home. Here are 6 reasons that suggest the holidays may be the perfect time to go into contract on your property!
Advice for First-Time Homebuyers
Buying your first house can be a rollercoaster of emotions. To guide you through this exciting process, check our expert advice for first-time homebuyers.