Are You Looking for Ann Arbor Short Sales?
Ann Arbor area short sales often appear as 'hot deals' to local real estate buyers. It's important to do your research and connect with your real estate agent before jumping the gun on a short sale. There are several things to thing about in this buying process that you may not have considered. A seller needs to be in default on their mortgage payments in order for the bank to consider a short sale. They may even be behind in payments which can mean that a discounted price would bring the short sale price up to market value. Make sure you work with your real estate agent to do the research necessary to work with a short sale:
- Find out who is in title
- Find out whether a foreclosure notice has been filed
- Find out how much is owed to the lender
- Find out how many loans are held on the property so you know the debt positions held
You should also make sure that the seller is aware of potential lender demands. Some sellers are not prepared to make a short sale. They must be in default and they will need to provide a letter of hardship (among other things) to the lender to meet the criteria. They will also need to be prepared for potential taxes related to the forgiven debt on the sale.
You should try to follow a time-line. Here's a list of potential things you'll need to think about sending to the lender if approved for a short sale by a seller:
- Submit your offer to the lender for approval
- Send a copy of your earnest money to the lender
- Send a preapproval letter to the lender
- Send a list of comparable sales to the lender
- Give the lender a deadline for approval
- Be aware that the lender pays the commission (not the seller) so it will most likely need to be negotiated
- Be aware that as a buyer you might have to pay certain fees normally paid by the seller as the lender (who is giving a discount) will not likely pay - make sure you pay for important things such as inspections, don't waive your rights to have them done!
Short sales in the Ann Arbor area are happening, the bottom line is that you should look to your real estate agent for advise in making this process a successful one. Work with an expert who has experience in these negotiations.
For more information on short sales in Ann Arbor please contact Kathy Toth and Team.
