Purchasing a Short Sale in Nashville TN
Purchasing a Short Sale in Nashville TN is very possible in 2010 but not always as easy as it sounds. I get calls often from people who have found 4 bedroom houses listed for $20,000 and they want to know what they have to do to buy them. Often these homes don't exist or are in such bad shape that it would take tens of thousands of dollars to bring them up to living condition. Then you often have more money in them than their worth.
What is a Short Sale?
A short sale means the property is listed at or below the amount needed to payoff the existing loan/loans. Sometimes the seller's lender may accept a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender has been contacted in advance or will accept your offer, even if the seller accepts it.
Understand that not all sellers are in default (behind on their mortgage payments) when they list their homes as Short Sales. Some want to move, for whatever reason, but the property is no longer worth what they owe on it. In these cases, some lenders will approve the Short Sale.
Short Sales and Foreclosures in Nashville are often good bargains. But, when the numbers don't make sense, you need to remember that you still get what you paid for it. This is where your Realtor comes in. They will do research on the property to see what it is worth in present conditions.
Make sure your are up for the challenge to tackle the short sale. In some markets fewer than 1in 10 ever make it to closing. In the Nashville market Short Sales tend to fare better, closing close to 1 in 7. Some lenders are more difficult to work with than others. Hopefully, your Realtor knows which ones they are.
If you are looking to take advantage of the Tax Incentives that are expiring on April 30th this may not be the route to take. Often Buyers do not hear from lenders for 60 to 90 days from the offer that they've made. Talk to a Realtor and get the best advice you can.
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Connie Harveyis a local agent with Prudential Woodmont Realty, serving home buyers and sellers in Nashville, TN, Brentwood TN, and Franklin TN. Let her help you realize your Real Estate goals.
Connie can be reached at 615-661-7800 x 1300 or at HarveyC@realtracs.
Follow her Blog: Nashville Tennessee Living
Search for Homes in Nashville TN
Search for Homes in Brentwood TN
Connie Harveyis a local agent with Prudential Woodmont Realty, serving home buyers and sellers in Nashville, TN, Brentwood TN, and Franklin TN. Let her help you realize your Real Estate goals.
Connie can be reached at 615-661-7800 x 1300 or at HarveyC@realtracs.
Follow her Blog: Nashville Tennessee Living
Thanks for the information about short sales. So many people think this is the best way to get a great buy, but as you explained the numbers don't always bear it out. Sometimes these are not the great deal people believe them to be. Often there are regular listings in the same neighborhoods that can be even better deals.
Good Points that everyone should consider and know about. Short Sales are not generally the best in deal in town. Thanks for the post.
Mike - One thing that Buyers don't always consider is that Bank still wants to get as close to "retail" price as possible.
Kathy - Purchasers need to be informed!
Connie:
I talked with a Seller this week who needs to do a short sale. We were BOTH so frustrated with the attitude of Wells Fargo and their lack of really wanting to help. I think they really want another foreclosure in their vault.
The sooner we bring balance to the market, the sooner it will be better for everyone. And to continue to send people to foreclosure, that's not going to bring any balance to the market.
Approve the short sale, and both the bank and the sellers can get on with their lives. Wait. Did I just presume a bank has a life? They are people are they? Just institutions with no feelings.
Thom - I recently met with a seller who needs to do the same thing. I've given her a list of questions to get answered before we can move forward. I hear there's a whole new wave of foreclosures coming through in late summer or early fall.