Posts Tagged ‘Length Of Time’
Purchasing Real Estate on a Short Sale
Jodi Funke asked:
A short sale occurs when a lender agrees to allow a homeowner to sell their home for less than the amount owed on a mortgage. Why would he do this?
How the Lender comes out a Winner
While it may seem surprising that lenders would accept less than they are owed, they do benefit from the process. The lender is going to take a loss either way. He might go through the long, costly process of foreclosure and then another long process of evicting the homeowner, fixing up the property, listing it for sale and ultimately selling it for less than he has invested. His other option is to accept a short sale now, avoid the foreclosure process and avoid being stuck with a difficult to sell property.
How the Homeowner Benefits
A foreclosure is very damaging to one’s credit report; with a short sale, the homeowner is doing their part to meet their obligation to the lender while minimizing the damage to their credit history.
Great for the Buyer
Though the process of a short sale can be frustrating, the buyer benefits by purchasing real estate at a reduced price; often for pennies on the dollar. Buyers who are looking to negotiate a short sale should work with real estate professionals who are experienced at handling these transactions.
Sometimes the buyer is one who will be fixing up the home for their primary residence. Often, the buyer is an investor who is looking to “flip” the property for a profit. Lenders who accept a short sale frown on investors who profit from the very property that they took a loss on! This is the reason for seasoning requirements; owning the property for a certain length of time before reselling.
Jodi Funke is the founder of http://www.cashforshortsales.com a company who specializes in short sale transactions. Jodi is a transactional lender who provides funding for the investor to purchase a property on a short sale and sell the property for a profit the same day. Their team of real estate professionals, attorneys and title companies are experienced at handling these transactions while working at the highest level of integrity.
La Mirada Real Estate
A short sale occurs when a lender agrees to allow a homeowner to sell their home for less than the amount owed on a mortgage. Why would he do this?
How the Lender comes out a Winner
While it may seem surprising that lenders would accept less than they are owed, they do benefit from the process. The lender is going to take a loss either way. He might go through the long, costly process of foreclosure and then another long process of evicting the homeowner, fixing up the property, listing it for sale and ultimately selling it for less than he has invested. His other option is to accept a short sale now, avoid the foreclosure process and avoid being stuck with a difficult to sell property.
How the Homeowner Benefits
A foreclosure is very damaging to one’s credit report; with a short sale, the homeowner is doing their part to meet their obligation to the lender while minimizing the damage to their credit history.
Great for the Buyer
Though the process of a short sale can be frustrating, the buyer benefits by purchasing real estate at a reduced price; often for pennies on the dollar. Buyers who are looking to negotiate a short sale should work with real estate professionals who are experienced at handling these transactions.
Sometimes the buyer is one who will be fixing up the home for their primary residence. Often, the buyer is an investor who is looking to “flip” the property for a profit. Lenders who accept a short sale frown on investors who profit from the very property that they took a loss on! This is the reason for seasoning requirements; owning the property for a certain length of time before reselling.
Jodi Funke is the founder of http://www.cashforshortsales.com a company who specializes in short sale transactions. Jodi is a transactional lender who provides funding for the investor to purchase a property on a short sale and sell the property for a profit the same day. Their team of real estate professionals, attorneys and title companies are experienced at handling these transactions while working at the highest level of integrity.
La Mirada Real Estate