Ok, the time has finally come. The finances are there and now it’s time for the fun part, actually looking for that new home! But where? In today’s market, there are definitely deals to be had and one place to seriously consider looking is what is known in the real estate industry as a “short sale”.
What is a short sale you may ask? Good question! A short sale (sometimes referred to as a “pre-foreclosure”) occurs when the lender agrees to accept an offer on a home that is actually less than the home is worth. Why would a lender do this? Simple, many times the lender loses less money than if they actually foreclose on the property.
For this reason, lenders considering a short sale do have an incentive to approve deals a bit more quickly. If they hold out they might actually get less money later (especially if the property goes into foreclosure). This is a tremendous opportunity for you! Of course, in the real world, not everything happens as quickly as we would like.
If you are interested in finding that short sale property, be patient;”good things come to those who wait!” On average, lenders take about a 20% loss on a short sale. There may be a bit of a waiting period if the lender is waiting for a better offer (to minimize their loss) and you may also be competing with investors that are looking for a property that they can resell for a profit or that can be rented out. The bottom line is, short sales are a great deal in today’s market place and are well worth a closer look