Sometimes in the Los Angeles, CA real estate market, we run into to houses which are offered really low, low prices for a certain period of time. This makes us wonder why the price is that low. These are what we call as short sale. When a house is available for sale in a prices lower than what the house must be. There are emerging home owners in such situation as this, there are many factors that have brought about this.
One must also know that a short sale is entirely different from foreclosures. Short sales are when a certain lender already owns the title of a property and sold it directly. This is a better picture than having the property in a foreclosure status, which the homeowners dislike. But for buyers, there would be many pitfalls, that is why it is required that buyers of short sales must be wise in the contract. It is that list of risks that you need to know before you pursue this endeavor of buying short-sale properties.
Short sale and foreclosures are two different things. Short sale is when a seller’s lender has taken the title of the property and has it sold directly. Here is a list of what candidates that short-sales must have:
The process will seem to be a long and winding road, especially in the LA area, where it seems that everything can move as slow as the traffic on interstate 110, so one needs to bring a bag full of patience to deal with this kind of transactions. This is the first what to bring for one interested buyer.
REAL ESTATE LEGAL ATTORNEY
A lawyer will be the one to negotiate on your behalf; he or she will represent you in negotiating with the lenders and all the other particular negotiations that needs a legal advice. Out of every five proposal of short sales, there will only be two that are given approval by lenders. Even so, if you have the best attorney available, he or she will increase if not assures the chances of getting the contract approved.
Of course, lenders will always prefer cash offers, who wouldn’t? It’s imperative that one must prove his capability of the business, even if you can’t pay all cash for a short-sale property. Once you’re pre-approved, give a large down payment then you may seal the deal once you are ready. Such offer is viewed more favorable compared to those buyers with less secure finances. But if you still need to sell another home to be able to purchase the home in short sale, this may not be a good timing. The lenders will not be agreeable with contingency offers and even so with closing terms that are flexible. They play the game with accuracy all the time.
In the event that you find yourself really into it and you are also capable of the demands the offers needs then you should hire the services of the following: In the selection process, you need to be extra careful.
REAL ESTATE PROFESSIONAL:
Los Angeles real estate investors are using real estate professionals so that they can do business long distance. They would prefer to use a local real estate agent in San Antonio, TX. You need to find your perfect match in this work. Hiring a professional real estate contractor can be the best option that you could to get close to working with the best people around. You have to consider doing a few background checks. A recommendation from a friend or even a family member cannot suffice your own little research about the one you are planning to hire. When we buy houses in San Antonio, we work directly with San Antonio investors who had experienced working in short sales & with motivated sellers, if the one you hired does not have an experience, you may both get difficult time. Interview some practitioners and asked them the number of short sales have they successfully closed. Get those with the best working experience.
An initial title check on properties on short-sales which includes the entire lien attached to the property can be a good job by the title officer. If there are many lien holders that are also applying with you, it is quite tough to get through the short-sale. But finding a good & reliable title officer in the San Antonio area is absolutely crucial for any investor in Los Angeles looking to do business in Texas.