A short sale happens when a homeowner sells their property for less than what is priced on their mortgage. To put it in layman’s terms, the seller is “short”of the money needed to repay the mortgage provider fully. Often, financial institutions such as banks or mortgage providers agree to a short sale for them to recover a portion of the mortgage loan that was owed to them.
A short sale realtor can assist in lessening the damage to a homeowner’s credit report and credit score as compared to a foreclosure, which means the homeowner will have better chances of applying for another mortgage loan and buy a new home eventually.
Credit scoring firms consider foreclosure as a deadly credit score wrecker. Short sale realtors can help protect the homeowner’s credit score, avoiding the fatal impact of a low credit score induced by the declaration of foreclosure.
Provide emotional benefit
With a short sale realtor, homeowners won’t have to suffer the indignity of selling their home because of foreclosure. Instead, they can just say they sold their house and moved on with their next phase in life.
Assist with temporary shelter
With foreclosure, homeowners are forced to vacate immediately, thus leaving them homeless. Short sale realtors can help homeowners extend their stay in their home until the transaction is completely processed.
4. Save on home sale fees
A homeowner usually pays all costs, such as real estate agent commissions, and other closing costs. But with the assistance of a short sale realtor, the homeowner does not shell out money since the financial provider or the bank shoulders the bills.
Benefits for Buyers:
Assist in buying the property at a
fair market value
The mortgage provider must agree to accept the home at a fair market value rather than the remaining mortgage balance due as the homeowner doesn’t have a final say regarding a short sale. Typically, the mortgage provider will have the house’s pricing and value appraised. Thereafter, the buyer’s offer will be compared to the estimated worth from the appraisal. If the results of the comparison are close, the mortgage provider may then approve the sale rather than foreclose the property, or provide a counteroffer for a bit more alleviated pricing.
In the event a counteroffer is proposed by a mortgage
provider, the buyer can still purchase the property close to its value instead
of paying too much if the buyer has to cover the owner’s mortgage. Interested
buyers can usually get good deals with the assistance of a short sale realtor
since the latter can provide countless options available, such as pricing,
paperwork, and a whole lot more.
Secure a Lock in Sales Price
A short sale realtor in San Diego can buy some time for the homeowner as well as assist the buyer in securing a lock in price for the house while waiting for the mortgage provider’s approval. When making an offer for the home, however, a buyer can independently lock in the sales price. If the real estate market begins to rebound while the buyer waits for the mortgage provider’s approval, the buyer can still purchase the home for its appraised worth at time the offer was made. The buyer can then own the house, which could be resold when the market continues to improve.
Assist with mortgage provider
financing
Having a good credit report and credit score may mean that the buyer does not have to get a mortgage loan, and the short sale realtor can aid them in getting a mortgage provider by showing off their good credit report and credit score. For a smoother sale, the seller’s mortgage provider may finance the mortgage. Closing the sale will become easier since the mortgage provider typically already has all the buyer’s financial information. Additionally, attractive financing may be offered by the mortgage provider as an incentive so it can continue to collect mortgage payments for the property without much of a hassle.
Can provide coordination
When a foreclosure
happens, the homeowner may pose difficulties for a new buyer. The buyer may be
forced to take legal action to force an eviction for the previous homeowner. In
some instances, angry homeowners can cause deliberate damages to the property
before they leave it. In contrast, many homeowners are eager to complete a
short sale, which may spare the buyer some of the problems linked with
foreclosure. For the homeowner, a short sale presents less damage to their
credit report than a foreclosure, and allows them to recover and buy a new
house more quickly. With the help of the short sale realtor, the buyer and
seller can communicate and opt for an agreement that would be beneficial for
both parties, or negotiate and intervene if necessary.
This sense of
cooperation between the homeowner and buyer may facilitate the exchange and get
the new owner into the house faster.
Final Thoughts
Hiring a short sale realtor in San Diego can help
both the buyers and sellers as they will be freed from the hassle and stress of
the whole transaction. It would benefit them both to hire a legitimate short
sale realtor in order to avoid fraud or scams.
