A brief sale is the sale of a property for less than the balance owed on the loan for that property, generally to prevent foreclosure. These may be great opportunities for buyers looking to buy property at a price below market. There are a few intricacies relating to this type of property sale that you ought to be aware of before beginning the process.
1 bait of short sales is the minimal listing price. However, that price is specified by the vendor and his or her agent. The lender might have no knowledge of the price, even though it gets the best decision on accepting the price in a short sale. The buyer and his agent should check similar properties recently sold in the region to make an offer more inclined to be approved by the lender. Offers which are too far below market price tend to get a slow response, and sometimes no response, in the lender. “Approved brief sales,” or brief sales which have a listing price which has been approved by the lending company, often shorten the time frame of this process.
The name”short sale” may be misleading regarding the time frame needed to finish the process. Lenders are bombarded with a high number of trades every day, and in California it may take anywhere from a few weeks for them to respond to an offer on a brief sale. Yet, once a brief sale was accepted, there is little to no flexibility together with the closing date. It’s necessary to have patience and all the essential paperwork prepared before closure on a brief sale.
All short sales aren’t accepted by the lender, so it is very important to keep other options open while going through this process. It’s legal in California to have an offer on more than 1 property at a time. Additionally, though some loans require an inspection and any repairs to be made before the closure, short sales are”as is” sales, meaning the vendor will make no repairs. It’s the responsibility of the buyer to make any repairs. Having appropriate expectations before entering the brief sale process can make it a better experience for all parties involved.