A short sale differs from that of a "normal" real estate listing in that the owner is selling the property for less than what he owes various lenders for the mortgage or mortgages. In most cases this also means that the property is sold at less than its value however this assumption is true only if the property values specifically market values have not decreased since the most recent mortgage was obtained. While a such a sale will not improve the seller's credit rating it offers less of a negative mark than a home foreclosure and is less complicated than a personal bankruptcy. Thus there are many situations why homes may be listed as San Diego Short Sale Listings.
The first explanation to come to mind is a situation where the homeowner might be short selling the property at a loss to avoid foreclosure because the mortgage is irretrievably in default. Another situation might entail a marked and continuing loss in the property's value especially as compared to the market price.
The owner may choose to unload the property and the monthly mortgage payments - still planning to pay off his remaining debt - but saving increasing losses as his property continues to devalue. Some quick sales occur as the result of an elderly relative's death after purchasing in a vacation community. The inheriting parties often short sell the property and pay off the remaining note with proceeds from the deceased life insurance policies.
Locating Short Listings
In some cases real estate agency websites openly advertise short listings and some agencies even specialize in this type of sale. Banks and lenders - especially those holding notes on the property - often disapprove of this label as they believe it encourages lower purchase offers for the properties. Alternatively another term may be used to suggest this type of sale such as "quick sale." Other times restrictive clauses are utilized to suggest a short sale. These include "property sale [is] subject to approval by a bank" "preforeclosure clause" "property bound for auction" or "notice of default filed." All of these terms indicate that the property will probably be sold at less than its assessed value but most certainly sold for less than the value of its note.
Property Record Evaluation
After locating a potential property of interest the buyer or his agent will need to review and evaluate the public records available on the property. Details to note include the titleholder or titleholders the debt amount owed to the lender and whether formal notice of default or a legal foreclosure has been filed yet. Other information that might be gleaned from the property file includes why the property may be up for sale. Unfortunately potential buyers may often benefit from an owner's desperation poor planning or bad luck.
Signing An Agent or Broker
Shop carefully for a real estate agent or broker. This is not the time to pay an agent to learn the complexities and requirements of a successful quick sale so prior experience with the procedure is a prerequisite. Ensure that your agent will represent your best interests by underscoring your wishes and detailing the terms of your agreement with a written contract.
The first explanation to come to mind is a situation where the homeowner might be short selling the property at a loss to avoid foreclosure because the mortgage is irretrievably in default. Another situation might entail a marked and continuing loss in the property's value especially as compared to the market price.
The owner may choose to unload the property and the monthly mortgage payments - still planning to pay off his remaining debt - but saving increasing losses as his property continues to devalue. Some quick sales occur as the result of an elderly relative's death after purchasing in a vacation community. The inheriting parties often short sell the property and pay off the remaining note with proceeds from the deceased life insurance policies.
Locating Short Listings
In some cases real estate agency websites openly advertise short listings and some agencies even specialize in this type of sale. Banks and lenders - especially those holding notes on the property - often disapprove of this label as they believe it encourages lower purchase offers for the properties. Alternatively another term may be used to suggest this type of sale such as "quick sale." Other times restrictive clauses are utilized to suggest a short sale. These include "property sale [is] subject to approval by a bank" "preforeclosure clause" "property bound for auction" or "notice of default filed." All of these terms indicate that the property will probably be sold at less than its assessed value but most certainly sold for less than the value of its note.
Property Record Evaluation
After locating a potential property of interest the buyer or his agent will need to review and evaluate the public records available on the property. Details to note include the titleholder or titleholders the debt amount owed to the lender and whether formal notice of default or a legal foreclosure has been filed yet. Other information that might be gleaned from the property file includes why the property may be up for sale. Unfortunately potential buyers may often benefit from an owner's desperation poor planning or bad luck.
Signing An Agent or Broker
Shop carefully for a real estate agent or broker. This is not the time to pay an agent to learn the complexities and requirements of a successful quick sale so prior experience with the procedure is a prerequisite. Ensure that your agent will represent your best interests by underscoring your wishes and detailing the terms of your agreement with a written contract.
About the Author:
Want to find out more about San Diego Short Sale Listings, then visit James Dee's site on how to choose the best San Diego Short Sale Listings for your needs.
No comments:
Post a Comment