When is the Best Time To Do A Short Sale?
It's best to do a short sale when the property is in pre-foreclosure. You can perform a short sale when the bank owns the property, however your profits will probably be smaller. There are two stages within pre-foreclosure. The first stage represents those individuals who are behind on payments, and the second stage are those who are behind on payments with a notice of default. In order for the short sale to work successfully, homeowners should be in the second stage of pre-foreclosure or more than three payments behind on their morrtgage. Once the notice of default has been recorded, banks become motivated so you are more likely to get a discount. Until that time, banks will rarely discount a mortgage because the homeowners still have time to cure the loan and make up back payments.
WHAT TYPE OF PROPERTY IS BEST FOR SHORT SALES?
The property type or condition doesn't matter, as all mortgages can be discounted. The best properties for short sales are distressed houses that are in disrepair and properties that are over leveraged. Properties with large second mortgages are also prime targets since the second mortgage is wiped out at the foreclosure auction. Lenders on a second or third mortgage position would rather have something than nothing.
If you have other questions, or would to find out how to sell your home as a short sale, or how to buy a short sale, please feel free to e-mail me afinney@apr.com.
Your question will be answered promptly and privately. And you can be assured that no future contact will be made to you beyond your initial question.
Your question will be answered promptly and privately. And you can be assured that no future contact will be made to you beyond your initial question.
Reprinted from Chicago Title, Montclair, Oakland, CA. Information deemed to be reliable but not guaranteed.
