What is a short sale? is a questions I get often these days. Not that we have that many short sales around Lafayette, LA, but there are some.
In short, a short sale is when the lender holding the mortgage/note on the property agrees to sell it for less than what is owed on it. Why? Because in most cases, it allows the lender to avoid foreclosing on the property and losing even more money.
From a buyer perspective, buying a short sale property is not that much different from buying a regular listing except perhaps that it usually is not short, i.e. it takes time. The bank does not own the property but it does need to approve of the short sale. Getting a short sale approved and closed can take anywhere from 40 to 90 days, or more. I worked one last year that took over 6 months.
If you are on the market to buy a home and you are looking at a home listed as a short sale, prepare to be patient and do your homework. A short sale does not necessarily mean that you are getting a “great deal” on a home. In some cases, the owners owe more on the home than what it’s worth so you end up paying market value. In other cases, you may pay less than market value but the home needs work and the repairs can quickly add up.
Whatever you do, approach short sales and foreclosures with caution, do your due diligence, and hire a good real estate professional to help you navigate the process.
If you would like to receive a list of foreclosures and short sales in the Lafayette, LA area, contact me today!
Originally Posted at: Lafayette Real Estate News
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