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.
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:
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.