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What is a Short Sale?
A short sale is when a lender accepts a discount
on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, the property
is purchased directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has
an existing first mortgage of $600,000. An offer would be written to the lender for $440,000, which is accepted
as full payment for the loan. This is a short sale.
Why are they willing to take such a discount?
Several reasons. First of all, banks do not like excess inventory and bad loans on their books; therefore,
if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders
know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property
goes to auction, that they would be better off taking the discount beforehand and be finished with the headache
of it all.
It is best to do a short sale when the property
is in the pre-foreclosure state?
There are two stages within pre-foreclosure. The first stage being those individuals who are behind on payments
and the second stage are those who are behind on payments with a notice of default.
There is a certain process for calling the bank
when your doing short sales.
An important step in the short sales process is the BPO. This stands for Brokers Price Opinion. Basically a real
estate agent will come out and give their opinion on what the house is worth. The key to short sales is the BPO.
A real estate agent who has expertise in this
market is vital to an investors success.
REO Asset Services was specifically started to serve
the Las Vegas Foreclosures Real Estate needs of Banks and Financial Institutions in the disposition of their Bank
Owned foreclosed homes. So if your looking for a Las Vegas Foreclosure or Bank Owned Foreclosed Home, REO, VA or
HUD Repos, we are the Company for you. After all we are:
"Your Las Vegas Real Estate Connection!"
We also handle the marketing and purchasing for most
difficult or specialized Real Estate transactions: Properties in Default - Pre-Foreclosure - Bankruptcy - Divorce
- Probate
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Contact us now
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