In the most basic of terms, a short sale is paying off the balance of what’s left on a home’s mortgage.
Who Benefits:
- The homeowner—if they’re running into foreclosure and would like to avoid this on their records
- The bank or lender – at times, the financial institution will only grant a short sale if it’s more profitable than a foreclosure
- Buyers or investors – who will pay far less of the home’s market value in some instances
Though this may sound unreal to purchase a home below market prices, it’s wise to work with a qualified real estate agent who specializes in these types of transactions, to avoid wasting time and money.
Even though there are hundreds of short sale listings, it all boils down to whether or not the bank or lender will grant this short sale.
How can a real estate agent help with short sales?
The real estate agent will be the master negotiator between all parties involved in a short sales. These parties include:
The seller, the buyer and the bank.
A qualified real estate agent who is adept at closing short sales will work out the asking price with the seller. This can be the seller’s agent. The agent will then move on to submit the proposition to the bank or lending institution.
The next step in the line would be to close the sale with the buyer or list the home on the market, pending the short sale approval of the bank.
While waiting on all the red tapes to unravel, the real estate agent can give experienced advice about what the legal requirements are before the closed deal. The seller for instance, will need to put together all the necessary paperwork, to ensure he/she is free from any liabilities once the deed transfers ownership to the new buyer. A real estate agent can also help to provide more information on third parties such as lawyers or tax agents that can help short sales.
