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Short Sale

SHORT SALE VS. FORECLOSURE

Foreclosures, Short Sales, 3rd Party Approval – they are all buzz words and phrases that we are hearing a lot more of on television reports, newspapers, magazines, in conversation, and it is a major part of the real estate industry.
FOR A LIST OF BANK PROPERTIES CLICK HERE AND LET ME KNOW WHAT YOU ARE LOOKING FOR!

What caused this?
People stopped paying their mortgages. Loss of jobs, medical conditions, family matters, increase of other debt – are some of the common causes.

Foreclosure

These are properties that are now owned by a bank – typically the bank that the defaulting owner used to mortgage the property. Banks try to recover as much as possible to minimize their financial hit. Owner’s misfortunes have helped turn today into a buyer’s market. Home prices are falling creating incredible deals for today’s buyers and investors. The idea is to take advantage of the lower prices and buy now at low purchase prices.

Notes:
Process is not as difficult as a short sale.
Extra bank documents are needed.
Expect a 45-60 day closing.
Property is conveyed “as-is”.

Short Sale

This is the sale of a property done usually to prevent foreclosure, an “owner purgatory”. Owners that are going thru some kind of hardship are being advised to contact their mortgage companies, explaining their situation. You are basically asking the bank to agree to a payoff amount much for less than what you owe. Not all defaulting owners are approved for short sale. Banks want to see what the comps are around the property. They expect that your agent will try to get a much as realistically possible for the property. Neither the seller nor the agent will know what the bank will accept in lieu of your loan amount. Once an offer is received, approved by the seller, and then delivered to the bank. In the end, it’s the bank’s decision and timeline.

Notes:
Extra bank documents are needed.
Property usually conveyed “as-is”.
It is very hard to predict when the transaction will settle.

3rd Party Approval
This just means that a there is an additional party (the bank) that needs to approve the offer. This phrase is used when dealing with short sales.
FOR A LIST OF BANK PROPERTIES CLICK HERE AND LET ME KNOW WHAT YOU ARE LOOKING FOR!

First-Hand Short Sale Experiences in Baltimore
Read more about what you can expect after a short sale in this blog from an experienced Baltimore real estate attorney.

Find expert advice and helpful hints in our Baltimore Metro Home Buyer’s Guide
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