2<br />What is a Short Sale?<br />. There is more debt owed against a property than the property’s value. In a loan default situation, (pre-foreclosure) the creditor(s) may be willing to agree to allow the property to be sold for less than the loan amount and/or accept less than (or “short”) the amount owed as payment in full.<br /> ________________________________<br />The home may be over-leveraged or “underwater”<br />The seller may behind on payments and cannot sell for high enough to cover what is owed plus other required fees to close.<br />Lenders created short sales as a foreclosure alternative<br />Lenders would rather allow sellers to short sale versus foreclosing.<br />Foreclosing on properties costs lenders money<br />
3<br />Should You Place An Offer On A Short Sale ?<br />Short Sales transactions require buyers who meet specific qualifications.<br />Do not have a home to sell<br />Able to wait weeks or months before receiving an answer to their offer<br />Flexible on terms<br />Flexible on closing<br />Willing to purchase a home AS-IS<br />Have solid financing with no financing restrictions such as excessive contributions<br />
4<br />How Does A Short Sale Differ From Other Transactions?<br />Short Sales have a longer approval process because:<br />Seller must qualify for a hardship<br />Sellers must provide documentation<br />An evaluation of market value must be conducted by the seller’s lender<br />More parties are involved in the approval process<br />
5<br />Parties Involved In A Typical Real Estate Transaction<br />
6<br />Parties Involved In A Short Sale Transaction<br />
7<br />Why Should I Place an Offer On a Short Sale?<br />Most buyers place offers on Short Sale Properties for one or more of the following reasons:<br />There are no other properties available in the areas they want to live<br />Property contains most of the items on their wish list<br />Condition of the property<br />Not willing to purchase a home without property disclosures<br />Looking for a property under market value<br />Not in a rush and flexible on closing date<br />Not concerned if their offer is rejected<br />
8<br />Searching For The Home<br />Your Agent Will Help You<br />Locate all properties that meet your needs including Short Sales<br />Qualify the Listing Agent<br />Collect market data<br />Compare the Short Sale Property with Your Needs<br />Provide you with community, city, and school Information<br />Schedule showings<br />Help you complete the paperwork<br />Present your offer<br />Schedule inspections<br />Make sure you get timely updates on the progression of your offer<br />Manage the transaction<br />
9<br />Submitting An Offer<br />What you will need to submit an offer on a Short Sale:<br />Purchase contract<br />Short Sale Addendum<br />AS-IS Addendum<br />Fully Completed Loan Status Report or a Loan Approval<br />Verification of Funds If Paying Cash<br />Any Other Required Disclosures<br />Your Real Estate Agent Is Here to Assist You!<br />
10<br />Why Your Agent is Best?<br /><ul><li>They Know this niche market
They Know how to locate the right property for you
They Work with a team of Experts who are familiar with Short Sale Transactions
They are Ethically Obligated to Protect Your Interests</li></li></ul><li>11<br />In Conclusion<br />Purchasing a Short Sale home may require a little more patience and additional documentation submitted with your offer, but it just may be the path to finding your next great investment property or your family’s dream home. <br />
Buyer Qualification Form<br />ARE YOU WILLING TO WAIT FOR AT LEAST60-90 DAYS FOR AN ANSWER TO YOUR OFFER? YES / NO<br /> <br />DO YOU HAVE A HOME TO SELL? YES / NO <br /> <br />DO YOU HAVE ALTERNATE PLANS, IF YOU DO NOT HAVE A RESPONSE TO YOUR OFFER IN 60-90 DAYS? YES / NO<br />IF YES..WHAT ARE YOUR PLANS?<br />________________________________________________________________________________________________________________________________________________________________________________________________________________________<br /> <br />MY SHOWING POLICY IS TO PLACE AND MANAGE ONE TRANSACTION FOR YOU, ARE YOU WILLING TO PAY AN UPFRONT NON-REFUNDABLE RETAINER FEE OF $_______ FOR MULTIPLE VIEWINGS AND/OR MANAGEMENT OF ADDITIONAL PROPERTIES AFTER YOU SUBMIT AN OFFER ON A PROPERTY? YES / NO<br /> <br />ARE YOU COMFORTABLE WITH PURCHASING A PROPERTY AS-IS? YES / NO<br /> <br />HAS THE LENDER YOU SELECTED PARTICIPATED AND CLOSED A SHORT SALE TRANSACTION IN THE LAST 60 DAYS? YES / NO UNKNOWN<br /> <br />ARE YOU WILLING TO PLACE BACKUP OFFERS ON PROPERTIES? YES/ NO<br /> <br />ARE YOU WILLING TO PLACE A FULL PRICE OFFER ON A SHORT SALE? YES / NO<br /> <br />IF YOUR OFFER IS IGNORED OR REJECTED BY THE SELLER’S LENDER, ARE YOU WILLING TO LOOK AT OTHER SHORT SALES? YES / NO<br />BUYER: _______________________________________________DATE___________________________<br />BUYER: _______________________________________________ DATE __________________________<br />AGENT: ______________________________________________ DATE __________________________<br />
Contact me with any questions. I am here to assist you.<br />Mario J Saracco<br />Professional REALTOR<br />New Venture Realty,LLC<br />Bus: (623)889-3665<br />Cell: (623)215-5732<br />firstname.lastname@example.org<br />www.azrealestatebymario.com<br />“Prompt, Professional, Priority Service”!<br />
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