Do you the last time the real estate market was flooded by short sales? It was during the 2008 Great Recession, a time when most of us lost their income and jobs. We never knew we would ever find ourselves in this position, but here we are again. Thanks to the novel Corona Virus, several homeowners in Houston, Texas are experiencing challenges similar to those experienced during that period.
And that’s not even the worst of it, seeing as real estate experts are now predicting higher delinquencies next year.
What’s A Short Sale?
If you’re processing a short sale, you’ll be hoping to sell my home to a third party for what’s considered less its market value. Financially distressed homeowners often find themselves in these situations, and the process has to be approved by the mortgage lender.
As expected, the mortgage lender will be the one the proceeds will go to, and once they receive it, they’ll write off the sale price and original mortgage value difference. But that doesn’t mean that that’s always the case.
If the lender feels like the balance is still too high to let go of, they might seek a deficiency judgment against the property’s owner. And this is what will compel them to find alternative means of paying what’s left.
What Are The Benefits Of Investing In A Short Sale?
- You Get To Buy Cheap
A short sale might be bad news for a seller, but it’s actually an opportunity for a buyer. For starters, mortgage lenders prefer solving loan defaults through the short sale process, rather than going through foreclosure. They know if the opt for the latter, it will most likely cost them more to maintain the property before the sale, and they’d also be risking selling it at an even lesser value. That’s why you should get in on the action, and try to close the deal.
- Short Sales Are Normally Good Properties
Real estate investors in Houston, Texas have always argued that short sale properties are usually in far better conditions compared to their foreclosure counterparts. And they’re right. and that’s purely because a short sale will still have the owner as its legal occupant. The lender won’t have to worry about maintenance, or costly repairs.
What Should You Do Before Buying A Short Sale?
We’ve said this several times before, and we’ll say it again. Always do your due diligence. Before you purse any property, run the numbers, do a title search, carry out a thorough home inspection, and then make a competitive offer. Remember, you won’t be the only guy looking to buy a short sale in Houston, Texas.
What’s The Alternative?
You could always work with a real estate investor, such as We Buy Fast Houston Houses, if you’re not feeling the whole short sale vibe. Such a professional will also have affordable homes that can meet anybody’s expectations.
Are you interested in learning about how the process works? Just call We Buy Fast Houston Houses.