Site icon Potenzmittel Infos

Considering a Real Estate Short Sale

Considering a Real Estate Short Sale

Real estate short sales occur when the loan balance of a property is higher than the appraised value of the real estate. While not all banks do real estate short sales, most banks are willing to take on this transaction. Thus, you have to look for a bank or a lender that is willing to take on the transaction in order to complete the real estate short sale.

You can start things off by confirming the market value of the property. A real estate agent can do this by performing what they call the Comparative Market Analysis. Then, take into consideration the costs that you will have to spend on in selling the real estate. These costs include advertising expenses, the commissions and fees that you have to pay your broker, and closing expenses for the transaction. You also can add up the legal fees you will incur. Add up all the loans and compare it against the property.

From there, deduct the amount of money that is owed against the real estate from the anticipated profits of the transaction. The difference is the “short” of the real estate short sale. Your lender will consider this in deciding if the real estate short sale is fitting enough.

Before pushing through with the real estate short sale, you may have to get a lawyer to help you out in the legalities of the transaction. Likewise, getting the assistance of a certified public accountant is important since there are tax-related concerns that you will be dealing with. You have to determine what fees you have to pay for before going into the short sale transaction.

After this, you have to get a buyer. The buyer will pay off the money that the lender is amenable to. Your new buyer will not however assume the mortgage, but the sale of the real estate will be paid directly for the mortgage.

You also have to contact your lenders. Show your prospective lender that you are about to go in a short sale, and illustrate to him the information related to the transaction. The lender will accept the deal according to the amount that you will offer.

You also need to prove to the lender that you are no longer capable of paying the total mortgage amount or deal with the monthly payments. The lender would usually do another realestateout.com to find out if you are having financial troubles and incapable of paying the original mortgage. But if the financial woes that you have date back prior to your original mortgage, then the lender might even sue you for fraud. Likewise, lenders do not go for real estate short sales for real estate that are into second mortgages because the bank involved in the second mortgage will have to forfeit their investment.

Exit mobile version