How,buy,Foreclosure,Short,Sale business, insurance How to buy a Foreclosure Short Sales property?


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Foreclosure short sales happen when a property’s value decreases below mortgage amount and the home owner is unable to pay their mortgage payments making them liable to face foreclosure. The seller enters into a contract to sell the property at an amount less than balance mortgage value and lender may agree to forgive the balance payment after screening the hardship application of seller such type of property sales are called foreclosure short sales.Now how to buy a foreclosure short sales property!•    To find such homes glean information from some useful websites which have comprehensive listings of such properties. Make a list of all available options and shortlist one which matches your requirement.•    Authenticity – Check the authenticity of foreclosure short sales listing by confirming with the lender whether they have agreed to a short sale.•    Get in Writing – Get in Writing from Lender that after the short sale all the debt will absolve.•    Title ownership – Check who owns the title of property.•    Personal Visit – Personally visit the property to make sure there are not too much repairs required.•    Submitting purchase offer and documentation to lender – Lender will require a pre-approved loan from the buyer and may ask to increase the offer, so you must be ready with CMA or comparative market analysis of the property to justify that your offer is in conjugation with current market prices.•    Give the lender a time frame to respond after which you may cancel your offer.•    Get details of a contact person at lender’s office to pursue the offer; don’t just blindly send the offer.•    An agent with experience in short sales must be hired who will expedite the transaction and would help in all legal and financial aspects.•    Understanding foreclosure short sales commissions – The seller will not be paying any commission to the brokers or agents as they are not going to get any money. All the money will be paid to the lender, so generally the lender pays the commission to broker and is shared by buyers agent. Confirm this with the lender.

How,buy,Foreclosure,Short,Sale

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