If you’ve been out house hunting lately, you might have come across the term “short sale.” A short sale, unfortunately, does not refer to a quick home sale. Rather, a short sale means that a mortgage lender is willing to sell the house for less than the homeowner owes on the mortgage. A lender is willing to be “shorted” on the mortgage for any number of reasons, but usually because the home is valued for less in the current market than the balance of the mortgage.
Austin Short Sale Homes
If you are in the market for an Austin home loan and are considering a short sale home, there are a few things to keep in mind. A short sale can be a good deal for a buyer, but patience is required in any transaction involving a short sale. Because buyers are dealing with the seller’s lender as well as the seller, paperwork does not move quickly. In many short sales, the homeowner has stopped making payments and the home is vacant. It is in the lender’s best interest to get the defaulted loan off the books and accept an offer, but that doesn’t mean they will jump at any offer.
Choose an Experienced Austin Mortgage Lender
Having a real estate agent and a lender who are familiar with short sales are the keys to a successful sale. If you decide to make an offer on a short sale home, your real estate agent needs to do a little research. First, a title search will indicate how much is owed to the lender, who the lender is and whether there is more than one mortgage on the house. A buyer should know that complications can arise if more than one lender is involved.
Everything must be Approved by the Mortgage Lender
Although a short sale home is still in the seller/owner’s name, everything from the buyer’s offer to repair addendums to the final close have to be approved by the lender. It is crucial that the real estate agents for both the buyer and the seller have good lines of communication with a lender representative to move the process along.
As with any Austin home loan, make sure you find a lender you trust, who has the financial competence and agility to take the long road on a short sale with you.
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