Short Sales
Question: What is a Short Sale?
Answer: A Short Sale property listing is one in which the Seller is trying to sell the property for lower than the current outstanding mortgage loan amount. The Seller in this case does not have any funds which they can bring to closing that will bridge the gap between the purchase price and their loan amount. In this case the Seller is requesting that their lender settle with a reduced loan payoff. This is why all Short Sale listings you find on this website and alternate listings sites have the description as “subject to seller’s lender approval” or similar text.
Short Sale transactions generally take longer than a conventional purchase – sometimes three to six months at a minimum. Also there is no guarantee that the Seller’s lender will approve the purchase until the buyer is provided with a written commitment from the lender.
Answer: A Short Sale property listing is one in which the Seller is trying to sell the property for lower than the current outstanding mortgage loan amount. The Seller in this case does not have any funds which they can bring to closing that will bridge the gap between the purchase price and their loan amount. In this case the Seller is requesting that their lender settle with a reduced loan payoff. This is why all Short Sale listings you find on this website and alternate listings sites have the description as “subject to seller’s lender approval” or similar text.
Short Sale transactions generally take longer than a conventional purchase – sometimes three to six months at a minimum. Also there is no guarantee that the Seller’s lender will approve the purchase until the buyer is provided with a written commitment from the lender.
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need more information.
Thanks
More information about?
Re: Marina Blue #1806…can you mail me any photos and give orientation (eg. facing east) and size of balcony–18th floor, I suppose. Does this short sale require all cash (I have about 40% available now)? Thanks.
Walter – I’ll do my best to get the photos. All units in Marina Blue typically have waterviews, this unit would be on the South side of the building and would have downtown and bay views behind American Airlines Arena. Short Sales don’t all require cash but because this building is not a Fannie-Mae approved building at this time probably 30-40% down payment would be required by lender. I will email you details.
in a short sale will I keep the mortgage or the mortgage is paid with the amount the seller is asking for?
is there any banking obligation that I will absorb by buying the property?
I have the cash for the property, can you send me the floor distribution?
Alex – In a short sale the buyer presents an offer and from that offer a HUD is prepared which would disclose to the seller’s financial institution all the costs associated with the sale of the property. Among those numbers the seller’s lender will see a NET payoff to them. If they approve the sale and the NET payoff then you can proceed to closing the sale. The buyer would be issued title and is not responsibile for any past obligation on the mortgage. The seller may still have an obligation but that is between the seller and their lender not the buyer. As a buyer you would be responsible for cost of property taxes going forward and maintenance fees going forward. We try to have past due fees and taxes accounted for prior to presenting a contract to the seller’s lender for approval.
Regarding your last question – I am not sure which building/unit you are asking about.