10.07.2010

Amarillo Short Sales - What it is and how it works!

Amarillo Texas has a solid real estate market but there are always shortsales homes to be bought. Knowing where to find a short sale and more importmantlt how to work a short sale are crytical.


First Lets Start with what a short sale is:


In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment. Borrowers are able to mitigate damage to their credit history, and partially control the debt. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.


Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from an appraisal, Broker Price Opinion (abbreviated BPO), or Broker Opinion of Value (abbreviated BOV).


Lenders may accept short sale offers or requests for short sales even if a Notice of Default has not been issued or recorded with the locality where the property is located. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from mortgage failures that in part triggered the Financial crisis of 2007-2010, they are now more willing to accept short sales than ever before. For "under-water" borrowers who owe more on their mortgage than their property is worth and are having trouble selling, this presents an opportunity for them to avoid foreclosure as a result.






Buying a short sale is a great way to get an excellent buy on a house. Sometimes the process is very tedious and drawn out, but usually defiantly worth it. I recently had a buyer that I helped by buy a short sale property that I worked directly with the bank. When it was all said and done the buyers purchased a $319,000 house for $268,000. It took a little time and effort but now they own a beautiful home built in 2008 for $50,000 under market value.




If you have questions about buying Amarillo Short Sale Homes Please Contact Me!



Dirk van Reenen

Realtor, Auctioneer, Investor

806 654 3842

dirk@pru-ada.com

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