Short sales are one of the many different property options that are currently presented on today’s Miami real estate market. Property buyers will often find short sales to be one of the best ways to get good deals from the market since these properties tend to go for prices which are relatively lower than usual.
If you happen to be someone who might be interested in buying one of the many short sales that are available on the Miami real estate market, it is important for you to learn about what you can expect when it comes to these types of transactions and the first thing that you will need to understand is exactly what short sales are.
The Definition of Short Sales
Short sales are transactions where real estate properties are sold in order to generate proceeds which generally fall short of the total amount that is secured by liens against the property. Such transactions take place whenever a lender and a borrower agree to sell the property and absorb a reasonable loss as opposed to the borrower entering a default on the mortgage which makes it a much better option than foreclosure.
It is important to note that the seller of the property does not have to be in default in order for a lender to consider the option of a short sale. The option to short sale can prove to be reasonable once the value of the property has fallen or if the borrower owes more than the property is actually worth. As a result, short sales are generally priced around the market value of the property.
Property buyers who would like to purchase short sales will have a series of things to do in order to ensure that they get the best out of their purchase. Much like any other real estate transaction, buying short sales involves hard work and patience.
Nevertheless, here are some of the things that you are encouraged to do if you would like to buy short sales from the property market:
Seek Professional Assistance
In order to get you started, you will want to make sure that you are able to receive as much professional assistance from someone who is familiar when it comes to short sales. Our team of real estate experts is knowledgeable and experienced with these types of transactions which enable us to help speed up the process and protect your best interests.
Inspect Public Records
One of the most important steps in buying short sales involves conducting research on public records in order to find out what you should offer on the property. We provide our clients with information regarding the title, any existing foreclosure notices, and information on the amount that is owed to any lenders.
There are situations wherein a property will be sold on the market by individuals who engage in fraudulent activity such as requesting for money from the property buyer. It is important to keep in mind that sellers do not receive any money due because that is going to imply a loss for the lenders. Always make sure that the property seller has all of the evidence to prove that they qualify for a short sale.
Once you have found that a seller is qualified for a short sale, you can then proceed to make an offer on the property to the seller. We provide our clients with assistance in creating a proposal alongside all the other material that is needed for the offer.
As soon as the seller accepts your offer, it will have to be sent to the lender for approval. It is only when the lender accepts your offer that a deal is set into motion. Often, the lender will request to find out whether you are pre-approved for your own loan and that is why you will want to send a letter of pre-approval to the lender to make sure there is no delay in their approval.
The Lender’s Response
There are situations wherein a lender will submit offers on short sales to a committee which will then go over the offered terms. However, most lenders are easily able to come to a decision within two to three months. Once a reasonable time frame passes by and no response has been received, you will find it to be in your best interest to cancel your offer and proceed to other short sale options.
When it comes to short sale transactions, it is the lender who is responsible for any of the commissions that are to be paid since they are the recipients of the money and not the seller. More often than not, the lender will want to negotiate when it comes to the commission paid to the listing broker and your agent and so you will want to see to it that your real estate agent waives the difference in order to avoid having to pay for the commission yourself.
The information above only tackles a number of aspects of the entire process. Buying short sales has proven to be a rather complication process compared to other options found on the property market. Nevertheless, we see to it that all of our clients are able to make the most of their opportunities which include short sale options on the Miami real state market.
If you would like to purchase short sales within Miami today, we encourage you to get in touch with us today so that we can personally assist you with your purchase.