Hilton Head Short Sales
In today’s blog I would like to define Short Sales and go over the pros and cons of purchasing one. A Short Sale is a real estate transaction where the seller’s proceeds are not enough to cover the mortgage, liens and closing costs. In addition, the seller does not have the necessary funds to cover these expenses themselves. This is an important difference in that sales close everyday where the seller has to come “out of pocket” to cover these costs and these sales do not fall under the definition of Short Sale.
Obviously, the number one draw for a buyer to a short sale is getting a good price. When viewing Hilton Head MLS statistics, I see that some buyers are able to get a deal by purchasing a short sale – at least on purchase price. What the MLS statistics don’t show, and what you may not hear about, are all of the unexpected costs associated with a short sale. They can include, appliances (disgruntled sellers often remove them) repairs, termite damage, tax liens, mold and a host of other problems that can arise because the seller does not have the money to “make things right”. In a short sale, the lending institution has no repair or tax lien obligations either.
Another Short Sale hurdle is dealing with the lenders. Many times, the lenders won’t recognize your offer, even when it is full price! This indifference stems from many factors including the fact that they are overwhelmed with volume, they have no emotional involvement in the sale and PMI is paying the mortgage while you are on hold. Additionally, they do not want to put negotiations in writing so they can switch buyers in mid-transaction.
Wow! It sounds like short sales are more problems than they are worth. While there is some truth to this, there are some good deals on Short Sales. My advice is to seek out a good Realtor that can look at the whole picture to advise you on whether the property is indeed a bargain and assist you in negotiating the many hurdles that may come up. You can start by reviewing all Hilton Head Short Sales and Foreclosures by Clicking Here: Randys Short Sales.
There are no comments for this entry.
[Add Comment]