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One of the biggest benefits of short sale auctions is that they allow both the buyer and the home owner to benefit in a variety of ways; while the buyer gets the property for a lot less than they would have purchasing the property after a foreclosure, the home owner benefits because they didn’t have to foreclose. Ultimately, this option is something that a home owner and a buyer agrees upon when a foreclosure is just around the corner, and those looking to take advantage of it might want to get to know this option just a bit better. 1. When Does This Sale Start? When a buyer and a home owner make the decision to take advantage of short sale auctions, they need to move quickly because of the time span between a foreclosure notice and the finalization of this procedure, which can span 35 days. Usually, investors tend to take their time in analyzing a property before they take the leap and make the purchase, but this is not always possible, especially if a foreclosure is around the corner, and so if they want to take advantage of the deal, they need to act fast. 2. The Documents Needed For a Short Sale The documents that need to be submitted by an investor interested in a short sale will usually be outlined by the lender who will be supplying the financing for the deal. Quite often, the lender will require a hardship letter that will inform the institution of the reasoning behind the short sale. It is also important for a purchase and sales contract to be provided, as well as settlement statements, banks statements, financial statements and a range of other forms. 3. Will The Auction Affect The Seller’s Credit Rating? It is the lender that will usually determine what should be placed on the seller’s credit record. Many lenders will state that the loan has been repaid, but they might just add a comment about the payment being less than was originally agreed upon, and this can end up reflecting slightly negatively for the previous home owner. 4. Can The Seller Make a Profit? Due to the nature of the sale, sellers probably won’t end up making a profit from the sale of their home, but they will be able to avoid foreclosure, and this is often beneficial enough. Since the buyer was able to purchase the property at such a discounted rate, they will often have the ability to sell it on so that they can make a profit from their sound investment. In the end, when they are tackled correctly, these auctions are beneficial for sellers and buyers, and this makes them very popular indeed. For more information about short sale auctions, please visit our website.
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