What Is A Short Sale?
A short sale is when the home owner’s mortgage company will consider accepting less than what the current homeowner owes on the property. In some cases, the mortgage company will pre-approve the list price. This usually happens with a HAFA short sale. But for the vast majority of the time, it is likely that the mortgage company did not pre-approve the list price. In cases like this, it is of paramount importance that you review the comps for the short sale listing with your agent.
The bottom line is that no matter what the list price is, the mortgage company will seek net an amount that is well within line with current comps (market value). If the listing agent has grossly underpriced the home, it’s highly likely that the mortgage company will reject a lower than market value offer based on the comps that they’ve acquired.
So be sure your agent explains this to you and that you know the difference between list price and market price. Check out these short sale listings.
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