The current real estate market, people often hear the short sale and Shortsaleforeclosure of these two terms. Here, I talk with everyone in two parts:
First of all, what is short sale then? Short is the "missing" means, then the "short sale" is "sold at a loss." After the house sale proceeds insufficient to repay bank debt, that is, the real estate prices, it's worth less than it owed. Most of this occurred in the past two years to buy houses. Those who do not pay the first payment or pay very little down payment for a house, for various reasons, the house owner has no ability to repay the loan, had no choice but to find real estate agents to do "short sale:.
In the market, Shortsalehome, big price than the market price is low, is intended to quickly find a buyer. When you fancy a "short slae" house, you must understand the true master of the house bank, bank the power to veto the sale. Most "short shale" of homeowners will not you bargain, but only to get rid of as soon as possible. When you signed a sale and purchase agreement with the owner, real estate agents or lawyers and then will all the information, including your ability to lend, the owner's financial situation, the reasons for inability to pay and other arrears, etc. sent to the bank along with . Banks will be sent to give the house valuation. Above the contract price, the banks are not necessarily acceptable, but may be, and you bargain. Therefore, if you want to buy cheap "short sale" house, must be psychologically prepared for this sale, the process varies from two and even more than half a year. If you're anxious to move, buy a "short sale" house is unwise. You will give up halfway, wasting their time. If you're in no hurry, is likely to have the opportunity to pick up "bargain."
Last year, I handled the transactions, there is a good example. A 5 bedroom, 3 bathroom, over 3500 feet of the house, valued at almost 500 thousand yuan. As the owner has no further contributions, long time no management house, we have succeeded in persuading the banks to accept a price less than 400,000 yuan, while the main house to repay a small portion of bank debt. But this process, the buyer have to wait more than six months time, not everyone has the patience to wait so long.
In the "short sale", the current market, more of a "foreclosure sale" (Bank of auction).
Bank of the auction, there are two: "Pre-Bank Owned" and "Bank Owned".
"Pre-Bank Owned" is the owner's contribution had been outstanding for several months, the banks hire a lawyer in the local newspaper advertisements for public auction on that day. If you are going to participate in this auction, you must figure out the house a total number of outstanding debts, including taxes, water charges, are there any other users, a house mortgage arrears. Because once you bid for this house, you have to pay all its arrears to the house before they can transfer. Plus you have to vote in your price on the auction price plus 5%.
"Bank Owned" house, the bank has adopted a legal means to confiscate the house. In other words, banks are the sole owner of the house. This house, most real estate agents, transfer, the bank must pay off all debts in this house. Therefore, banks have confiscated the house to buy, they do not have to worry about those who do not pay the anticipated costs.
"Bank Owned" house, and some in the online auctions. Some auction houses would have chosen a location at the same time more than the auction houses. In short all of the auctions is to attach the auction fees. Agents except for real estate companies. Whether to participate in that auction, the auction house, the first is better grasp the information.
As banks confiscated the house more and more, they can not hold an empty house a long time, we must cut prices to sell. Lending rates are now low, but requires very strict. Have sufficient income and good credit. With cash investors, invest in real estate today is a great opportunity. If you want to learn more about real estate, or the intention to buy a Bank Owned or a short sale house, please call 401-286-8898 inquiries.
