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Short Sales

Short Sales

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Short sales, also known as pre-foreclosures, are a type of property on the market.  Unlike how they sound, a short sale can actually take several months to close, if they in fact close at all.

Numerous factors can determine the likelihood of a short sale making it to the closing table.  Educating yourself on the overall process can save you time and money.

What is a Short Sale

A short sale occurs when the lien holder, often a mortgage lender, settles on a loan for “short” than the balance owed.  This is one method used as an attempt to avoid foreclosure.  This selling option allows a bank to recoup any potential losses.
 
When the real estate market crashed, short sales made up about 60% of the local listings.  Today, they only amount to about 2% of current listings on the market.  This is a result of a strengthened economy and low unemployment rate.
Stressed Homeowner

How to qualify to sell as a Short Sale

If a borrower has fallen behind on their mortgage payments, their mortgage company may be inclined to allow the borrower to sell the property as a short sale.

Falling behind on payments isn’t the only reason a lien holder may consider a short sale.   Other reasons can include:

  • Unexpected Illness
  • Job Loss
  • Death of Mortgagor or Co-Mortgagor
  • Imprisonment
  • Unable to Sell at Market Value
  • Pre-determined Hardship

Request Short Sale Help

If a borrower has become ill, loss their job, etc., they may take these matters into consideration to grant a short sale. Since each company’s policies can vary, you should check with yours to determine their guidelines.
Buying a Short Sale Home

Buying a Short Sale

With the massive amount of inventory on the New Mexico real estate market, you’ll inevitably come across a distressed property such as a short sale.

Home buyers should spend quality time understanding the transaction process of a short sale before considering them as an option in the house hunting.

Approved vs. Unapproved

Knowing if a listed short sale is approved or unapproved will make a world of a difference. If a short sale is approved, you can close on a short sale in as little as 3-6 months.

This is because the homeowner’s mortgage company has received necessary documents from the homeowner, ordered appraisals and/or BPOs (Broker Price Opinions) and have approved a specific list price.

Syan Real Estate