you looking for a home in the Granada Hills area to reside in or
purchase as an investment property? Do you want to find a way to save
money, invest in established or up-and-coming neighborhoods, or get
the most for your dollar? Your answer may lie in purchasing a home
through a short sale, or a foreclosure. Here are some points to
a short sale, a seller is upside down on their mortgage. They owe
more than they have in equity and are asking their lender to accept a
lower price for the home. Before you do anything: hire
a real estate expert who has dealt with short sale negotiations
to Purchasing a Home on Short Sale
the sellers are more likely to be occupying the home, it is often in
better condition than a foreclosed house.
pricing may be under the market value as the sellers are trying to
pay off their loan to the bank and save their credit rating.
is less market competition as the sellers must get the sales price
approved by their lender.
that the buyer has been approved for a short sale by the lender.
be able to speed up the acceptance process by the bank.
there isn’t a deficiency judgment that would hold you liable for
paying the difference between the sales price and the actual amount
a foreclosure, the mortgage has not been paid for months; the owner
has defaulted on their loan. If the bank and the home owner cannot
come to an agreement, either a payment schedule or a short sale, the
property defaults to the mortgage lender and goes into foreclosure.
An auction is then arranged. Your realtor may not be able to help
much with the auction itself, but if you can find a home in
pre-foreclosure (short sale) your realtor will have more room to
negotiate. Foreclosures in California can go on for several months.
That’s a long time if you need a home now. However, if you can
wait, you may be able to get a great bargain. As with a short sale,
hire a qualified local real estate professional to handle all the
legal ins and outs.
of Buying a Foreclosed Home
banks have put money into a foreclosed home to make it more salable.
may be able to purchase a home at auction for well below market
bank will be more motivated to negotiate if the home is purchased
pre-auction or if it sits on the market too long afterwards.
realtor will advise you of any obstacles such as:
liens, or back taxes on the property.
liabilities that do not require the mortgage lender to provide the
history or condition of a home that has gone through foreclosure. In
many cases, they may even not allow inspections prior to the sale.
to Make a Successful Home Purchase
discussed in previous blogs, decide your wants and deal-breakers
before you start looking, and know your time constraints for your
move. An experienced local real estate expert can help you vet the
homes and take the lead in the negotiations with the homeowner or
Magro Realtor has successfully handled many short sales and
foreclosures for her clients. Click the link to get started on your