For all of you who have shopped around for a house, the term short sale or pre-foreclosure are not new. However, you might not have a complete understanding of what these terms mean. Both terms have the same meaning: the seller is trying to avoid foreclosure and is attempting to negotiate a deal with the lender in hopes for not ruining the seller’s credit report completely.
Though the seller and lender both have a few benefits of short selling, the benefits to the buyer are also not less. Mostly people speculate that a short sale property is never a good buy. Many people concentrate on these speculations and forget that if the drawbacks are kept on a side, buying a short sale has many advantages for the buyer.
The most important benefit of a short sale is that the buyer will be offered a price that is lower than the original value of the property. Why? Because the lender and the seller are both looking forward to avoiding foreclosure and the costs that come with it. Also, lenders end up paying for any repair and maintenance work that the property needs when it is on the market. To avoid these costs, lenders usually accept to sell the house at a much lower price without spending any money on the repair and maintenance. If the buyer is willing to spend a little extra money on the repair and maintenance of the property, then a short sale is a great buy.
Banks are the usual lenders involved in different property matters. The bank will try to salvage as much of the loan payments as it can. A foreclosure not only costs that bank a lawsuit but also adds cost like repair and maintenance of the property and removes the chance of getting any of the money that was initially loaned. Another great worry for the bank is that even after a foreclosure, there is no guarantee that the property would sell. To avoid further costs, the bank may offer the short sale buyer different lucrative options like low interest rates, longer mortgage period or any other such offers that will help the bank avoid further costs and sell the property.
Another reason why a short sale is better is that the seller does not switch on a destructive mode on the property. The seller also realizes that a short sale is much better and that once their financial conditions get better they have a chance of returning to their old home or buy a new property within a shorter time period. This helps the buyer achieve a property with usually no major maintenance and also move into the house more quickly.
This article was written by Bradford Damm, the CEO and Owner of Short Sale San Diego Realty. If you are interested in buying or selling a short sale in the San Diego County area you can find more information on www.shortsalesandiego.com. You can Search All San Diego Homes for Sale including Short Sales and Foreclosures. There are also some predetermined search fields for price range and fields such as Luxury Homes, Fixer Uppers and more on the right side of the page.
Contact Info:
Bradford Damm
619-825-0000
info@shortsalesandiego.com
http://shortsalesandiego.com/
Short Sale San Diego
4485 Kansas Street
San Diego, CA 92116 Short Sale San Diego Realty Explains the Latest Benefits of Buying a Short Sale
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