Looking for a new home in St. Louis, MO? Have you heard the term Short Sale? Do you wonder what is a short sale? Are you afraid of pursuing a short sale because of nightmares you’ve heard about buying a short sale? Well, fear no more, buying a home that is being sold as a short sale is about to change.
Fear # 1. Short Sales take forever to close.
Have your buyer’s agent contact the selling agent to determine if it has been pre-approved for a short sale by the lender. Some banks are becoming pro active in combating their foreclosure percentages and have begun contacting distressed home owners about doing a short sale. With the increase in short sales in St. Louis, MO many banks have increased their staff and trained them in short sales vs foreclosures.
Fear #2. Short Sales are actually owned by the bank.
The home is still owned by an individual and that person actually negotiates the contract. The contract always includes the language” Subject to lien holder’s approval”. The bank does not get involved with the short sale until the individual owner and you the buyer agree to all the terms of the contract.
Fear #3. Short Sales are going into foreclosure.
Not necessarily, Short sales are usually placed on the market by a home owner that has experienced some type of distress, maybe a job loss, death of a spouse, divorce or any number of reasons. Intelligent short sale sellers know they are in over their head and have either negotiated or in the process of negotiating a Loan Modificationloan modification. Although the loan has to be in distress to be considered for a short sale a high percentage of loan modifications do fail causing the property seller to seek a short sale.
Fear #4. Short Sales cost money up front.
Short Sales should never require and upfront monies, other than earnest money deposit. Most lenders considering a short sale like to see a 2-4% earnest money deposit. Including a Real Estate board approved short sale form insures your earnest money deposit will be returned if the short sale is rejected.
Fear #5. Short Sales closing costs are higher than a conventional sale.
Short Sale closing costs are no higher than a conventional property purchase and in fact most of the banks participating in short sales will allow up to 3% in closing cost credit to the buyer of the short sale listing.
Fear #6. Short Sales are higher priced.
Short Sales will require the lien holder to do any appraisal to determine area values and how much the property is really worth. In today’s Real Estate market most appraisers take into consideration the current economic climate of the Real Estate marketplace and adjust the price downward making the short sale purchase price much more attractive.
Purchasing a short sale has some minor drawbacks but in today’s economic client great deals are being found everywhere. Should you decide to purchase a short sale home in the St. Louis, Mo area hiring a experienced short sale Realtor is your first step.
We at The Helderle Team of RE/MAX Best Choice have taken the steps necessary to position our team at the forefront of the short sale market in St Louis, MO and have taken advanced short sale training in helping both short sale home buyers and short sale home sellers.
Contact us today for your free list of St Louis, Mo short sale properties.