How to Find Short Sale Listings Easily
To find some of the best deals in real estate, resourceful investors often rely on short sale listings. The real trick is in knowing how to find short sale listings whenever you need. In fact, most real estate investors are opting for short sale listings more and more as they enjoy a reputation of helping all parties that are involved in a transaction.
Suffice to say, short sale listings can help everyone, be it an investor, or a homeowner who wants to avoid a foreclosure and stop the bank from repossessing their place.
We take a look at how short sales work and how they can help you.
Short Sale
The term short sale refers to a process where a bank or mortgage holder gives their blessing to let their borrower sell their property, with one major difference – the property will be sold for less than what they owe the lenders on their mortgage.
Once you have the lender’s approval to sell the non-performing asset i.e. the property, you can sell it to other parties.
A short sale helps borrowers who are facing a crisis situation by easing their financial burden. This process results in their home being sold to avoid foreclosure, plus it also helps their credit report from going off a steep cliff.
To understand why distressed homeowners could agree to sell their homes for less than what is owed on it, and how lenders are also ok with getting less for the property than what they originally intended, the answer’s simple enough. Short sales can help them offset an even bigger loss in the future.
It is important to understand that banks don’t like to hold on to non-performing assets indefinitely. They’d rather sell it off than repossess it, since this way they don’t miss out on mortgage payments and interests from new owners. Banks are prudent enough to accept a lower offer for their non-performing asset on behalf of the original borrower. This way they can avoid an otherwise long-drawn and expensive process that could potentially lead to a foreclosure.
And besides, new buyers get to enjoy the best of both worlds – a great deal on a property.
How to Find Short Sale Leads
There are multiple ways to find properties on short sale listings. Some of them include:
Contact Your Realtor
Distressed properties, like any other properties, are represented by selling agents. This can be either a realtor or a real estate agent. Most people are unaware of the fact that real estate offices have a list of people they can contact in looking for short sale avenues. In fact, some investors can even get offers in their own areas. So get in touch with the nearest real estate agency near you.
The Local Courthouse
Homeowners who have neglected to pay their mortgages may end up at a courthouse sooner or later. They are required to report the status of their property to local municipalities. Therefore, it is a good idea to go visit your local courthouse and find information related to distressed properties.
The Local Newspaper
By law, foreclosing lenders are required to publish the notice of foreclosure in local newspapers. Real estate agents often look for this information in their local dailies, reaching out to distressed homeowners and come at an understanding with them. So make sure you contact them after checking your papers.
Conclusion
The thing is that short sale listings tend to favor buyers who are patient. But if you know how to quickly find and identify short sale listings, you can make the most out of it. Make sure you are familiar with the whole process so that you can increase your odds of success.