Short Sales 101
Property buyers who are in search of the best deals on the Miami real estate market are sure to come across property options which are commonly referred to as short sales. Unlike other property options, shorts sales have proven to provide people an opportunity to purchase real estate at more affordable prices.
What are Short Sales?
Short sales are real estate options which are being sold on the property market in order to generate proceeds which fall short of the amount that is secured by liens against the property. Short sales only become possible when a lender and borrower come to an agreement to sell off the property to absorb a tolerable loss instead of having to enter a default on a mortgage.
The person selling the short sale property does not necessarily have to be in default for the option of a short sale to be made available. In fact, once the value of the real estate property has dropped, or if the borrower owes more than the real estate property is worth, the option to short sale becomes a good option as it enables the borrower to avoid foreclosure.
Needless to say, short sales are typically priced around the actual market value of the property which makes them far more affordable than other options on today’s Miami real estate market.
As a common rule, people who are looking to engage in the world of real estate need to keep in mind that the process of buying short sales involves determination as well as patience.
If you happen to be one of the many property buyers who would like to take the time to learn more about available opportunities on today’s property market, you should make it a point to understand what steps are needed in order to purchase short sales since these property options prove to be among the most affordable deals within the region.
Finding Suitable Professional Assistance
When it comes to any type of real estate purchase, one of the first steps that you will want to take is finding professional assistance that is suitable for your goals. When buying short sales within Miami, it is important that you are able to find real estate experts that are highly knowledgeable when it comes to these types of transactions.
Our team of real estate experts at Miami Real Estate Inc is experienced with short sales within the region and we see to it that all of our clients are given professional assistance when it comes to their specific needs.
Inspecting Public Records on Short Sales
Property buyers will want to see to it that they spend enough time going over all the options that are available on the property market since research is always an integral part of all real estate transactions.
Once you have been able to go over your available options on the Miami real estate market, it is crucial to inspect public records on options that have captured your eye. The reason behind this is to find out what amount you should offer on the property.
Miami Real Estate Inc plays a major role when it comes to the research process. We provide our clients with information regarding the title of the short sale property, any existing foreclosure notices that pertain to the property, as well as information on how much is owed to the lenders in connection to the property in order to determine the right amount to include in the offer.
Checking Property & Seller Qualifications
It is not uncommon for people to encounter individuals on the property market who engage in fraudulent activity involving short sales. While such situations may take place completely by accident, there are those who do so by purpose which is why property buyers are always encouraged to check whether or not the property and the seller are truly qualified for the sale.
All of our clients can be rest assured that short sale options we provide are always qualified. We make sure that there is concrete evidence to prove such qualification.
Handing Over All Necessary Documentation
Once a short sale has been verified for a short sale, property buyers will be able to proceed with making an offer on the property. First, the offer is submitted to the seller. Once approved, it is handed over to the lender in order to seek their approval as well.
It is only when the lender has approved of your offer that the transaction can take place and we make sure that all of our clients receive professional assistance when it comes to all of the documentation that needs to be submitted.
Also, there are lenders who will want to verify whether property buyers interested in the property are pre-approved for their own loans which is why including a letter of pre-approval will be useful to speed up the process.
Allowing Time for the Lender to Respond
More often than not, lenders will be able to come to a conclusion regarding offers on their own. However, there are others who will opt to hand the decision to a committee which will go over all of the terms mentioned in the offer.
On average, decisions on short sales are made within two to three months. Should the time frame exceed the average, property buyers will be encouraged to cancel the offer and move on to consider other short sale options that are available within the market.
If you would like to be able to purchase short sale properties within the Miami region, there are definitely a lot of opportunities that are waiting for you on today’s property market. Feel free to contact our team of real estate experts so that we may personally assist you with your real estate needs by helping you throughout the purchase process.