Can you make an offer on a short sale home?

Can you make an offer on a short sale home?

A short sale is when a homeowner and their lender agree to sell the home for less than what’s owed on the mortgage loan. That said, the short sale lender will have to approve the offer price. The buyer really just has one chance to submit an offer that will pass the bank’s standards for approval.

What does it mean when a house is listed as short sale?

A short sale in real estate is when a financially distressed homeowner sells their property for less than the amount due on the mortgage. The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender.

How long does it take to review an offer put in on a short sale home?

Once an offer is received and signed, I send it to the bank, along with the seller’s short sale package and a prepared HUD. From that point to the time of short sale approval, the average timeline is about 60 to 90 days. It means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.

How to put your house up for sale as a short sale?

Contact your lender about putting your home up for sale as a short sale property. Ensure that your home is eligible through your lender’s standards and discuss the amount your lender is willing to accept for a short sale offer. Note that if your mortgage is not in default, your lender may not allow you to sell as a short sale.

Can a purchase offer be made on a short sale?

Making a purchase offer on a home is always an art, but making one on a short sale listing is especially tricky. From what you should do (have plenty of patience) to what you shouldn’t (demand extensive repairs), these tips can ensure that your short sale offer goes a long way in getting the seller’s and lender’s approval.

How long does it take for a short sale to be approved?

The waiting game is the number one drawback for real estate investors when making short sale offers. While some may be approved within a couple weeks, the majority of short sale offers take months to be approved or rejected — sometimes longer. The last tip for investors when making short sale offers is to simply wait.

How much can you offer under list price for short sales?

The short sale bank will hire a Broker Price Opinion agent and pay that agent less than $100 to produce a BPO. Bear in mind, though, neither your offer price nor the BPO agent’s price could have any basis in market value. You cannot hang your hat on the list price of a short sale .

Can a seller make an offer on a short sale?

In a foreclosure, the lender has already bought the property, so you’ll make an offer directly to the lender, without a buyer involved. In a short sale, the home is being sold at a loss. So, while the seller still owns the property, the lender must approve any offers.

Where can I find a short sale house?

You can find a short sale home anywhere you’d find any other home listing — most likely on the MLS. A short sale home must be listed through a real estate agent, designated as a short sale and usually labeled “pending third-party approval” with an as-is clause. So it’s a very specific listing.

How much money do you have to put down for short sale?

There’s no set rule for how much money to submit with your purchase offer. 2  Some homebuyers put down an earnest money deposit of $1,000, but an amount between 1% and 5% of the sales price speaks volumes. It says the buyer is serious. Real estate contracts typically call for the earnest money deposit to be placed into a trust account.

How is a short sale different from a foreclosure?

Short sales are different from both traditional home sales and foreclosures. In a traditional home sale, you work with only the seller and the seller’s agent to make an offer. In a foreclosure, the lender has already bought the property, so you’ll make an offer directly to the lender, without a buyer involved.

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