San Diego Foreclosure And San Diego Short Sales
A real estate short sale is when a lender agrees to sell the home at a price that is less then what is owed on the property. This happens when the bank agrees to sell the home at the price less than its mortgage balance.
People mostly see that by buying on a short sale is like getting a great deal amongst others but this is not always the case. Although purchasing a short sale is often a great way to purchase real estate, many times, due to the real estate market going through a downturn, you can purchase a home and still experience a reduction in value.
There are disadvantages when one wants to go into a short sale. For one, the typical process takes longer because transactions are done directly with the bank and must gain their approval to sell the home. It is a bit complicated as it is not as common as a regular real estate transaction. Also, when a client makes an offer to purchase a real estate short sale they do not have the benefit of getting a quick response like they would from a regular seller.
The process of getting approved for a short sale is the exact opposite of what a borrower goes through when they are trying to obtain financing. When a seller is trying to get the bank to approve them for a short sale, they have to show the bank that they have made every attempt possible to try and make the payments. Also when a borrower obtains financing they have to show that they can afford to make the mortgage payments.
San Diego, California has experienced a large increase in home values in the last few years. As a result San Diego short sales of home values increased and the real estate market is going through a correction or cooling off stage where we can see home values come down which can result in the home being worth less than what the mortgage balance is.
With the rising costs of real estate, San Diego foreclosure sank in. Having this situation in the area created a “short-sale” demand. San Diego foreclosure proceedings usually begin after a borrower has missed three mortgage payments. The lender will record a notice of default against the property, and unless the debt is satisfied, the lender will foreclose on the mortgage and proceed to set up a trustee sale.
The process of buying directly at a legal foreclosure sale is risky and dangerous, plus it has many disadvantages. There is no financing to support this so we are looking buying on a cash basis. Another precaution to take is that the title needs to be checked before the purchase or the buyer could end up with a seriously deficient title.
The property’s condition is not well known and an interior inspection of the property may not be possible before the sale. In addition, only estate (probate) and foreclosure sales are exempt from some states’ disclosure laws. In both cases, the law protects the seller (usually an heir or financial institution) who has recently acquired the property through adverse circumstances and may have little or no direct information about it.
Most residents know that there is no shortage of San Diego foreclosures. In this real estate market, buyers will score a bargain if they just search for one of the many San Diego short sales available.
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Tags: Real Estate, San Diego, San Diego California foreclosures, San Diego California short sales, San Diego foreclosure, San Diego short sale, short sale