What is a Short Sale?
You have probably heard that short sales are great or maybe you have been told to stay away from them. Regardless of what you have heard, the truth is that a short sale is a complex process. They can also take longer than you expect.
However, whether a short sale is a good or bad deal depends on your situation. Sometimes it might not be easy to understand if a short sale will work in your situation or not. This is where the services of a real estate attorney in Bucks County PA come in.
But before you start celebrating, it would be important to understand how a short sale process operates. You should also get in touch with real estate attorneys in Bucks County PA for proper guidance.
Understanding a short sale
This is the selling of a home where the lender is ready to dispose of a home for less the amount he or she is owed by the mortgage company.
There are two things that must be present for a sale to qualify as a short sale:
- The owner of the property or home must be very much behind in terms of mortgage payments to a point that there is no hope of repaying the mortgage loan
- The real estate market must be so low to an extent that the value of the house is below the amount remaining.
Usually, the property owner and the mortgage company will opt for a short sale process for the purposes of avoiding foreclosure. Talking to a real estate lawyer in Bucks county PA can also help you to decide whether the deals is worth going for or not.
In general, there is a lot of misinformation about short sales. But one of the most popular misconceptions is that the main goal of lenders is always to dispose of the house and get as much money as possible.
In the real sense, a lender will try to recoup as much as possible of what they have lost. One thing that most people don’t realize is that just because a house is being advertised as short sale, it doesn’t imply that the lender will accept it irrespective of whether the seller has accepted.
Below are some of the things that make a short sale tricky and confusing:
Short sale versus a foreclosure
There’s none between a short sale and foreclosure that can be termed as an easy way for homeowners who want to sell their houses.
In a short sale, it is the homeowner who begins the sale process of his or her house. In order for a short sale to occur, the value of a home must be less than what the property owner owes. They must also be behind in terms of mortgage payments.
Although prospective buyers normally engage with home sellers when the short sale is taking place, the lender must be furnished with the finer details of the deal before approval.
In other words, the lender has the final word when it comes to selling the house. You should also work closely with real estate lawyers in Bucks County PA right from the word go.
When to seek help from a lawyer?
Although a real estate agent plays an important role in selling a home, hiring a Bucks County Short Sale attorney is much better than the former. This is because lawyers will not only help in the negotiation process but also offer legal advice.