California Short Sales
If you started searching for homes for sale you can’t avoid the home search process without finding California Short Sale Homes. 33% of the homeowners in California that have mortgages owe more than their homes are worth. For most of these people, if they need to sell, they will need a short sale approved.
Nearly all Short Sale properties for sale in California are found on the Multiple Listing Service (MLS). People trying to sell short usually require to sell quickly, and require the help of a Realtor who is experienced with short sale transactions.
What is a Short Sale?
A short sale is simply a property where the amount owed is greater than the market value. Short sales ordinarily happen among properties that are in default where the homeowners have missed several mortgage payments.
It is usually the lenders best interest to allow a short sale rather than let a distressed borrower foreclose. Foreclosures are expensive
Purchasing California Short Sales
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Buying short sale homes is really not much different than purchasing other California Homes. The main variance is that it requires considerably more perseverance, uncertainty, and waiting.
There are a few more steps required with short sales When you make an offer on a Short Sale property it not only needs to be accepted by the seller, but also by the banks involved. The bank approval on short sales can take months . When priced low, short sale homes usually have a great deal of interest and get multiple offers, after substantial waiting for bank approval there may not be any parties still interested still interested in the properties.
Short Sale properties in California are often priced below market value because the seller isn’t going to net any money from the proceeds of the sale, and so they don’t really care about receiving the best sales price.
Short Sales are also often priced low to attract offers before the file will be reviewed by the loss mitigation department. For this reason listing agents like to price the homes below market value to get the process started. To get at least some offer in on the property so they can get someone assigned to the short sale file.
Because the bank approval takes an unknown amount of time, it is usually not a wise to try and purchase a short sale home if you must purchase quickly. Banks generally have no respect for deadlines in the purchase contract.
Purchasing California Short Sales and Foreclosures
Foreclosures are at record highs in California. Not all foreclosures are guaranteed to be real estate deals, but many Pre-foreclosure, HUD, or REO homes can be purchased for substantially less than fair market. Purchasing foreclosures is a good method for acquiring instant equity and passive residual income. The term foreclosure includes many different aspects in the foreclosure process. Pre-foreclosures are homes that have received a default notice (NOD) and then a trustees notice that are headed for a real estate auction. These notices are public record and anyone can view them. Foreclosures can include pre-foreclosure homes, short sales, auction homes, REO’s, bank owned properties, and HUD homes. . Many bank-owned properties are rehabbed before they are re-listed. REO is short for Real Estate Owned, lender owned, or bank owned homes. Short Sale homes for sale are properties where the lender must discount the sale. The banks will allow short sales so the property won’t go to the foreclosure auction. Purchasing Foreclosures can be an exciting way too invest in California Real Estate. Most California REO and Bank Owned homes can be found on the MSL. Preforeclosures, and properties with short sale potential can be found on services like Foreclosure.com, RealtyTrac, and Bargain Homes Network.
