Foreclosure rates are rising and families are out shopping for cheaper homes or looking for places to rent. One type of sale that helps people avoid foreclosure and reorganize their debts is a short sale. There are many options for real estate in New Tampa, and a buyer is likely to see a few listings that are short sales. Unless you’re very familiar with the real estate industry, you may not understand what it means to purchase a short sale property. Below is a quick explanation on what it means to purchase a short sale real estate listing.
How a Short Sale Works
When a seller lists their home as a short sale it means that they’re struggling to pay the mortgage and want to negotiate with the lender. The transaction is similar to a regular real estate purchase, but there may be more paperwork and longer wait times. Essentially, the seller is trying to convince the bank to let them sell their home, provide the lender with the money, and get out of the remaining mortgage debts.
With this type of transaction for real estate in New Tampa, you will need to accept the property as-is and not expect that the lender will lower the price or provide money for repairs. The lender is the approving party rather than the seller, so it may take a little more time to close on your home than if you were dealing directly with a seller.
Expect to Pay Market Value
While there are some short sales on real estate in New Tampa that are below market value and a very good deal, expect that most short sales you look at will be at fair market value. Remember that the seller owes a considerable amount on his or her mortgage, so the bank wants to sell the property for as much as possible to recoup the money. Working with an experienced real estate agent is important to help you decide if you want to invest in a short sale or purchase directly from a seller. However, if your dream home is listed as a short sale, don’t let that intimidate you. You may just have a longer waiting period before you own the home.
One type of sale that helps people avoid foreclosure and reorganize their debts is a short sale.