Kathy & Ben
Thinking about purchasing a home? You may want to consider a house being offered as a short sale. While this type of purchase has unique challenges, if you are willing to be patient, it will pay off. This is how it goes:{[}]
A homeowner decides they want to sell their home. The mortgage on the house is more than the house value. The homeowner goes to their mortgage holder/lender and says, “I want to sell my house. What will you accept as a mortgage payoff?” The mortgage holder/lender responds, “Bring us an offer, show us you have no assets to pay the difference of what is owed on the mortgage, and we will talk.” So the homeowner lists the home for sale to solicit an offer for the mortgage/holder lender to consider and hopefully approve.
{[}]Things to know and remember when purchasing a short sale home in Atlanta:{[}]{[}]The sale is contingent upon the mortgage holder/lender approving the offer. Consider and remember when making an offer on a short sale, if the property is priced fairly, the mortgage holder/lender is not going to accept an unreasonable offer. No 50% below list price. The homeowner/seller is in a distressed financial position. Also, you must realize that the property is being sold “as is†because the seller/homeowner does not have money to make repairs or purchase home warranties. Generally the mortgage holder/lender will agree to pay reasonable closing cost – 3% of the loan amount. Contingent offers are not acceptable to the mortgage holder/lender.{[}]{[}] It will take 90 to 180 days as a rule for mortgage holder/lender approval. Why does it take so long? First the seller/homeowner will have to provide the mortgage holder with information showing their financial position has changed from when they purchased the house and they do not have the money to pay the difference between what is owed and what the property will sale for. Second the mortgage holder/lender will review the documentation. Third the mortgage holder/lender will request a third party price opinion (Broker Price Opinion) of the value of the property. Fourth they will review all the documentation again and request updates before responding to the offer. Remember the person evaluating the file will not move from one step to the next until everything is received and reviewed. Once everything has been received and reviewed the mortgage holder/lender can accept the offer or counter with a sales price that is acceptable. The mortgage holder/lender will also indicate what other terms of the offer are acceptable. At the end of the day, the mortgage holder/lender is looking at the bottom line….what is the cost of selling the house and how much money will the homeowner be short.{[}]{[}]What to do when you make your offer on a short sale home. As a purchaser. you need to confirm this is the house you want, do your inspection so you know the property meets your needs and expectations. If you find a problem, are you going to be willing to accept and resolve? Remember the seller is in a distressed financial position having no money for repairs and the mortgage holder/lender is not going to pay for repairs. Apply for your loan, provide all the documentation, and move toward the purchasing of the home. When the mortgage holder/lender approves the offer, a speedy closing will be a condition of the approval.{[}]{[}]You are doing something good. A short sale is a positive thing for everyone when you have the time. It allows you as a purchaser to get a home at a price below market value. It stops a possible foreclosure on the property and further value loss in the neighborhood. The mortgage holder/lender loses less money on a short sale than on a foreclosure. Finally, realize that sometimes bad things happen to good people and a short sale allows the homeowner/seller and their family to get out of a bad situation and move forward.{[}]{[}]A short sale is not for everyone. However, if you have the time to wait for a response from the seller’s mortgage holder/lender, it could allow you and your family to get your dream home.{[}]{[}] {[}]{[}]The Red Hot Atlanta Homes Group can help you or someone you know that is having trouble paying their mortgage. As Distressed Property Experts, The Red Hot Atlanta Homes Group has extensive training and experience in helping homeowners avoid foreclosure. Remember a short sale is a dignified solution to foreclosure and can have a lesser impact on your financial situation.{[}]{[}]For a personal consultation on all of your available options, we are just a call, 404-323-0049 or email, info@RedHotAtlantaHomes.com away.