The main difference between writing a contract to buy a Foreclosed property (a property that is owned by an institution) and a Short Sale property (property that is in a financial stress but has not been foreclosed on yet) is control of the process.
Here are two contracts I am currently working on:
1. On May 8th I presented the listing agent a contract to purchase a Short Sale property. On May 12th the contract was accepted by the Sellers. The listing agent sent the contract to the mortgage company for their review and possible acceptance, rejection or counteroffer. To this date, June 24th, we have absolutely no idea if this contract will go through or not; Mortgage Company hasn’t made any decision. In the meantime, the Buyer has his earnest money tied up. This contract is totally in the hands of the mortgage company and they call ALL the shots.
2. On June 4th I presented the listing agent a contract to purchase a Foreclosed property. On June 18th I was advised that the mortgage company accepted the offer and we will close within the next two weeks.
Both contracts would be good “deals” for the Buyers. But obviously Buyer #2 is a happy camper and Buyer #1 is out in limbo.
There is more to the mechanics of these two purchases, so if you would like to talk to me about Foreclosed and Shot Sale properties – just give me a call.
Subscribe to:
Post Comments (Atom)
6 comments:
Do we have many foreclosures and short sales in Pinecrest?
Thanks.
Jonathan
Actually, we have a few in Pinecrest. When they do come on the market, they get offer quickly! If this is something you might be interested in, make sure to have all your documentation ready.
Marie, what is a short sale?
In a nut shell, a Short Sale is a sales transaction in which the Seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
It's crazy how long and complicating a short sale can be.
Update. Well here we are, August 4th, the foreclosed property closed about 10 days ago. The new owner moved in this past weekend.
The short sale is still in limbo, the mortgage company still has not made a decision. I will keep you all posted!
Post a Comment