Understand Short-sales in the St. George Utah Real Estate market
Short-sales in St. George Utah attract homes buyers in hopes of getting a great deal. Many times you will see a home with a listed price that seems far below the actual value of the neighborhood and quality of the home. When that happens, make sure to have your agent contact the agent listing the property to determine if the property is a short sale, and if it has an "approved price".
St. George Utah Short-sales aren’t always the quickest and easiest transactions. They may take longer (anywhere between 4-18 months) and can sometimes be a nuisance to work around. Very few buyers actually close within 30 days, and most short sale transactions in St. George have taken several months to close.
What is the Definition of a Short Sale?
A short sale simply means that the seller’s lender is willing to accept a settlement amount that is less than what the seller actually owes on their mortgage. Both the homeowner and lender will need to accept and negotiate the terms of any offer submitted.
There are several reasons homes may become a short sale. Many times, the seller has stopped making payments on their mortgage and they are trying to avoid foreclosure. However, the homeowner doesn’t have to be currently in default for a home to be a short sale. If the homeowner owes more than what the home’s current market value is, and due to a hardship, they need to sell, the homeowner is most likely not going to get enough money to pay their entire mortgage balance. The lender will then consider a short sale.
Hire A Real Estate Agent with Experience in Short Sells
With any profession, experience is a necessary part to ensuring everything is done correctly. Short sale transactions are no exception. In fact, it’s imperative to use an agent that has experience with short-sales for the transaction to work out in a smooth and timely manner. This is especially true if the listing agent hasn’t had any experience with short-sales themselves. Rest assured, the agents at www.HotHomesofStGeorge.com are experienced and knowledgeable with the entire short sale process. Our experience is there to help protect YOUR interests and helps to expedite the process. You won’t have to worry about a simple, yet important detail being missed, or delays due to a slow follow-up. We are knowledgeable, professional, experienced, and most importantly, reliable.
Submit Documentation & Purchase Offer to Lender
Once an offer is placed, the seller may or may not accept. Once they do, the next step is to submit the offer to the lender to approve. While the bank is reviewing the offer, the homeowner will continue to show other clients their homes to look for back-up offers should your offer fall through, or the bank doesn’t accept the offer for any reason. The bank will also want to see that you have financing available to purchase a home. The proper documentation will be required to be sent to the bank.
Submitting More Than One Offer
What do you do while waiting for the bank to review and accept or decline your offer? There isn’t much you are able to do that will speed up the process of a short sale and the bank’s response. But, you can continue your search for another home that sparks your interest. In addition to that offer, YOU CAN CONTINUE TO SUBMIT OTHER OFFERS on numerous homes. You are NOT “under-contract” for the offers on multiple homes, and won’t be considered having contracts on more than one house. At www.HotHomesofStGeorge.com, we use a Short-Sale addendum which enables you to submit multiple offers, on multiple properties that you like, and have NO obligation to purchase any of them until YOU, the buyer, agree to the acceptance terms back from the bank of those offers. In fact, you don’t need to have Earnest Money (deposit) down until AFTER the bank accepts your offer. It’s a situation in which the buyer benefits from.
To learn more about the Short-Sale addendum that we use, click on this link here.
Due to the current market conditions, there have been an increased number of short sales and foreclosures in the past few years. Because of the high number, the response time has been extremely slow. (As stated before, usually two-six months) However, the banks seemed to have a quicker turn around just in the past few months. It isn’t rare to see lender submitting short-sales to a committee for approval. In most cases though, the lenders can usually decide within a few weeks, as long as you have submitted your offer to the correct person who makes the decisions. The agent listing the property will have the contact for the right individual that represents the lender.
Maintain Your Right to Conduct Home Inspections
In most cases, the lender doesn’t pay for the accustomed items that a seller typically pays for. This would include any sort of buyer credits, home protection plans, and budget for repairs. The buyer is generally asked to buy the home or property “as is,” and usually means no exceptions.
A home inspection is an essential step in any home purchase, but especially true with short-sales. The buyer will need to acquire and pay for any necessary inspections, which will make you aware of what possible problems there could be. It’s important to NOT waive your right on attaining these inspections. In addition, it’s a good idea to make your offer contingent on the outcome of them. The inspections can save you a lot money, and save you from stress and trouble. The inspection of the home should be a MUST for a smart investor.
Please contact us, or call us @ (435) 862-3303 if you have any additional questions about the short-sale or Foreclosure process regarding Real Estate in St. George Utah.