Thursday, August 28, 2014

Myrtle Beach Short Sales
A lot of real estate investors and home buyers today are opting for Myrtle Beach short sales instead of the traditional home purchase. There are lots of reasons for this, which most definitely include the much lower purchase price of short sale properties as well as the abundance of them. And if you work with a highly experienced real estate agent, the entire process will not take as long as it normally would.

On the other hand, if you’re still not sure about buying short sales, it is wise to look at its pros and cons first before making any purchases.

What are the pros of a Myrtle Beach short sales?

Obviously, the savings you’ll get from investing on a short sale is probably its most popular advantage. Because short sale properties are listed for a lower amount than what is necessary to cover mortgage debts, you as the buyer will be able to obtain a substantial amount of savings that you can use in some other ways.

Another big advantage is the number of competition in the market. Industry experts agree that there is less competition in the short sales market than other specific types of real estate market. With little competition, you’ll surely be able to find your dream home and purchase it at a good deal.

What are the cons of Myrtle Beach short sales?

The most common disadvantage of a short sale is the length of the entire process. Because there are lots of individuals and professionals involved in the process, people you need to get the approval of, the entire process takes longer than necessary. Aside from this, buyers should also be prepared for and well equipped to meet various deadlines and requirements.

Another common disadvantage are the additional repair costs and expenses that you will surely have to pay for after purchasing the property. Expect that there will be repairs and fixes needed on the house. These are common in every short sale. On the other hand if you were able to get a really good deal on the property, you’ll end up getting more money left for the repairs. Work with a professional real estate agent to ensure you find the best short sale deals.

The key to successful Myrtle Beach short sales is working with a professional and experienced real estate agent. Contact Jerry Pinkas Real Estate Experts now.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-839-9870

http://beachrealestateagents.com/

Helping you find the best Myrtle Beach short sales.

A lot of real estate investors and home buyers today are opting for Myrtle Beach short sales instead of the traditional home purchase. There are lots of reasons for this, which most definitely include the much lower purchase price of short sale properties as well as the abundance of them. And if you work with a highly experienced real estate agent, the entire process will not take as long as it normally would.

On the other hand, if you’re still not sure about buying short sales, it is wise to look at its pros and cons first before making any purchases.

What are the pros of a Myrtle Beach short sales?

Obviously, the savings you’ll get from investing on a short sale is probably its most popular advantage. Because short sale properties are listed for a lower amount than what is necessary to cover mortgage debts, you as the buyer will be able to obtain a substantial amount of savings that you can use in some other ways.

Another big advantage is the number of competition in the market. Industry experts agree that there is less competition in the short sales market than other specific types of real estate market. With little competition, you’ll surely be able to find your dream home and purchase it at a good deal.

What are the cons of Myrtle Beach short sales?

The most common disadvantage of a short sale is the length of the entire process. Because there are lots of individuals and professionals involved in the process, people you need to get the approval of, the entire process takes longer than necessary. Aside from this, buyers should also be prepared for and well equipped to meet various deadlines and requirements.

Another common disadvantage are the additional repair costs and expenses that you will surely have to pay for after purchasing the property. Expect that there will be repairs and fixes needed on the house. These are common in every short sale. On the other hand if you were able to get a really good deal on the property, you’ll end up getting more money left for the repairs. Work with a professional real estate agent to ensure you find the best short sale deals.

The key to successful Myrtle Beach short sales is working with a professional and experienced real estate agent. Contact Jerry Pinkas Real Estate Experts now.

Jerry Pinkas Real Estate Experts

604 N. 27th Ave

Myrtle Beach, SC 29577

843-839-9870

http://beachrealestateagents.com/

Helping you find the best Myrtle Beach short sales.

Myrtle Beach Short SalesMyrtle Beach short sales is indeed a beneficial alternative for homeowners to resolve their delinquent loans without damaging their credit score and without getting into foreclosure. Although more information about short sales are made available through different media channels – such as the internet, flyers, real estate professionals, etc. – there are still homeowners who list their homes as a short sale without fully understanding what this process means. Some even have the wrong beliefs on short sales.

In this article, you’ll learn which of the different beliefs that most homeowners have with regards to Myrtle Beach short sales are actually myths. The truths behind these myths will also be detailed.

  • Short sales are only for homeowners who have mortgage debt

Contrary to what most homeowners believe, short sales can also be an option for those who are not in mortgage debt. Having delayed mortgage payments for more than 3 months is not the primary and only requirement to be eligible for a short sale. According to Freddie Mac, there are general eligibility requirements that a homeowner should fulfill. These include the property being the primary residence of the homeowner and that the homeowner’s debt to income ratio should exceed 55 percent.

  • Myrtle Beach short sales make you ineligible for a new mortgage

Typically, a homeowner who has pursued a short sale due to the inability to effectively manage his or her finances can apply for a new mortgage after four years of closing the short sale. You must be able to prove and establish that you have acceptable credit for at least 48 months to be approved for a new mortgage. On the other hand, those homeowners who have undergone a short sale due to income loss or medical emergencies must be able to prove their acceptable credit for only 24 months to get approved. Consult with a professional Myrtle Beach real estate agent for assistance on how best to apply for a new mortgage.

  • A short sale can negatively affect your credit score

While some may see a short sale as a negative mark on your credit score, it actually rates better than foreclosure according to most real estate professionals. Yes, people who calculate your credit score will know that you went through a short sale but upon analyzing your financial records, it will show that the short sale is a better option than going into foreclosure.

It’s important for homeowners to expand their knowledge on short sales before jumping straight into the wagon. Learn more about Myrtle Beach short sales by calling Jerry Pinkas Real Estate Experts.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Ensuring you are equipped to go through a smooth and successful Myrtle Beach short sales process.

Short SalesClosing a short sales process has never been quick and stress-free. Despite this, however, many homebuyers and real estate investors continue to chase after homes under foreclosure and are being listed as a short sale. Because, really, homes offered through a short sale have value that can sometimes be higher than brand new homes. Because short sale transactions continue to increase, changes have been made on lender policies to make the process quicker and more efficient.

What makes a short sales transaction take lots of time?

A short sale is the process by which a house is hold for less than the mortgage owed to the entire property. The key persons involved in this type of real estate transaction are the buyer, the seller, the banker or lender, and the listing agent.

The first step after the seller has decided to put the property up for a short sale is to contact the banker or the lender and seek approval to sell the house for less. Now, it’s a known fact that mortgage lenders and bankers will lose money by in a short sale. They are less likely to get even the money they have invested and loaned to you. If you are the seller, you will need to spend time to coax them and let them see that they will gain more benefits in a short sale than foreclosure. When they agree to a short sale, however, their main goal is to lose as little money as possible.

What is the new short sales process?

Basically, the first step when you decide to buy a home through a short sale is signing the purchase agreement. After this, you need to have the bank confirm, verify, and sign the purchase agreement. Then, ask your lender for your modified mortgage process.

Because of the number of approvals you have to get, completing the entire real estate transaction will take weeks. And it takes longer if you have more than one mortgage on the property. By the time you complete all the required approvals and verifications, you only have a couple of weeks left to close the transaction.

The new process involves a new and relatively faster approach to short sale transactions. In this new process, the lender is allowed to underwrite the loan as soon as both buyer and seller have signed the purchase agreement. This can now happen even before the bank holding the mortgage on the property give its approval.

The bank’s approval of the short sale is still required for the entire transaction to proceed. The only difference is that the lender has a head start. So while waiting for the bank’s approval other aspects of the short sale process is already underway. When you receive the bank’s approval, you’ll have more than enough time to close the transaction and meet the bank’s deadline.

Get more short sales information by visiting Jerry Pinkas Real Estate Experts.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your partners in Myrtle Beach short sales investments.

Short SaleThere are several parties involved in a short sales process: the seller, buyer, broker, and lender. For the transaction to be successful all have to play critical roles and all will have to coordinate with each other. You as the buyer will have to be very patient in working with the rest of the gang and coaxing them to do their part so all of you will benefit from the short sale transaction. Although, lenders will probably require more coaxing than others as they basically don’t turn to short sale transactions until the last minute.

Learning more about short sales

A short sale transaction is an alternative – the best alternative for home owners and sellers – to foreclosure. Proceeds from the sale are most likely not enough to pay off the mortgage debt on the property. This is why the lenders are not always eager for these types of real estate transactions. They will want to check out other options available for them prior to looking at the short sale proposal submitted to them. Their approval is key in a successful transaction.

Once they are approved, the process will run smoother and faster, allowing all parties involved to benefit: buyers purchase a home at a fraction of a cost, sellers get rid of their debt without having to go into foreclosure, brokers increase their reputation, and lenders relieve their books of a delinquent and unpaid loan.

Short sales tips for everyone

  • Make sure the mortgage company is familiar and well informed with the local market so they can look at your proposal with a better eye and allow them to make a better decision.
  • Buyers will have to be patient in waiting for the lender’s response as the lender will most likely consider and look at other things before giving their approval. For example, most lenders will check all assets of the homeowner and compare this with the selling price. Some may also try to negotiate with the brokers to have their commissions reduced. Keep in mind that the primary goal of the mortgage lenders is get some money from the transaction and not to get rid of the delinquent property.
  • Have the sellers consult with their real estate lawyer for the legalities of the transaction. The seller’s goal is focused on relieving the mortgage debt and not about profiting from the property.
  • Make note of how much time and effort your broker is putting into the transaction and remember to fairly compensate him or her depending on the work he or she did.
  • Work with the lender and help them realize that they will save more money from the property if they approve of the short sale. Although, they will receive the money from foreclosure a lot faster than in a short sale transaction, they will have fewer expenses to pay for in a short sale transaction; hence, they save more money in the process.

Call Jerry Pinkas Real Estate Experts now to learn more about short sales.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your partners in successful short sales transaction.

Myrtle Beach Short SalesMany investors would say that buying Myrtle Beach short sales is an excellent and cost-effective form of investment. However, even with enough proof, there are still a huge number of home buyers who are not sure about making the purchase. This is probably due to the many risks involved in buying a short sale home.

What are the common risks involved in buying Myrtle Beach short sales?

There are several risks involved with the purchase of a short sale home; but none that couldn’t be overcome with proper planning, the right contacts and connections, and an additional dose of perseverance. There are two common risks that you can expect in this specific type of real estate transaction:

  • Buying a property that need lots of repair and renovations – Basically, the main idea in buying a short sale is to purchase a property for less than the amount that a similar property is sold for in the current market. One of the primary risks involved here are the necessary repairs that come with the property. Short sale homes are sold in an “as-is” basis. So, since it’s a pre-owned home, expect to pay for some repairs and renovations before you can live in your newly bought home.
  • Lots of persons involved and approvals to acquire – Another risk that most homebuyers are worried about in a short sale transaction are the number of persons involved in the transaction. A short sale property is usually owned by the mortgage lender or lenders – depending on how many loans were put on the house. As the buyer, you will need to conduct transactions with all the mortgage lenders. You will need to present your proposal to them and get their approval, which isn’t always obtained easily because most lenders will want to consider other options to make money on the property aside from a short sale where they receive practically zero profit.

Minimizing the risks involved in buying Myrtle Beach short sales

If you really want to proceed with purchasing a short sale property but are worried about the risks involved, here are some tips to help you minimize the risk and ensure a successful short sale transaction.

  • Do your research. Obtain every bit of information about the short sale property that you can get your hands on. This will help you get a deeper understanding of the property that you are trying to purchase. You’ll know of all renovations and improvements it has undergone, any pending payments to insurance companies and mortgage lenders, and others.
  • Conduct a complete and overall home inspection. Hire a professional to conduct overall inspection on the property before deciding to purchase it. This will provide you with a detailed description of the property including every area that needs repair and every aspect that you would need to pay for on top of the properties price. You can then use these pieces of information to negotiate the purchase price and persuade the mortgage lenders to approve of your proposal.
  • Hire a real estate agent to help you conduct research and create your short sales proposal. Probably the best advice you can get is to hire a licensed real estate agent with experience in short sale to work with you in this transaction. Not only will the real estate professional guide you in every step of the transaction, but he or she will also make some of these steps easier for you. He or she has the right contacts to provide you with all the information you need about the property that you are purchasing. Also, most agents know of the best home inspection professional and other contractors you might need throughout the purchase process.

Jerry Pinkas Real Estate Experts has an extensive record in successfully completing several Myrtle Beach short sales transactions. Call them now to inquire about their services.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your Myrtle Beach short sales expert.

Myrtle Beach Short SalesBuying Myrtle Beach short sales involves a tricky and extremely complicated process. There are lots of risks that can lead to severe and costly problems. If you are not very careful, you might end up losing a lot of money in the process. You as a short sales buyer must spend a lot of time reviewing all necessary documents, looking through every area that might cause a problem down the road, and closely inspecting all corners of the house.

But what if you don’t have the time for all these? What can you do to ensure your short sales purchase is successful?

Here are some of the top things to avoid when buying Myrtle Beach short sales.

  • Overlooking areas of the house that need repair, replacement or renovation.

There are some owners who, when faced with foreclosure, will sometimes damage the property before leaving just to get back to their mortgage lender or to vent out their frustration over their situation. On the other hand, do not be so sure of a house that has not been occupied for a number of years as this may also have some areas that need repair. What you will need to watch out for are signs of molds, leaks, and termites.

It is not wise to rely solely on the disclosure statement from the bank or the short seller. The disclosure statement may not likely include some issues on the property including whether or not defective materials are used in the construction, if the court-ordered remediation is up to date, etc.

  • Not bothering to conduct your own home inspection.

The first thing you need to remember when buying Myrtle Beach short sales is to conduct your own home inspection. You have to personally oversee this specific step of the purchase process so you need to really make time for this. This is the only way you will be able to see every area that can cause future problems as well as the areas that you should be concerned about and discuss with the seller.

  • Forgetting about the property’s insurance information.

If you forget to examine the insurance information, you may have to pay thousands of dollars in the future for additional insurance costs. Before purchasing the property, do a little extra research and find out about the current status of the property’s insurance. You will also need to check previous renovation records and confirm whether or not they were legally permitted and approved. Failure to do so, may cause you liable to these problems as you are now the owner of the property.

  • Expecting the sale to close quickly.

You must keep in mind that a short sale process is not the same as traditional real estate purchase processes. Buying a short sale takes a lot of time because there are lots of real estate and financial professionals involved. You and the property’s owner will have to spend time to persuade every mortgage lender and banking institution that stakes a claim on the property to pursue with the short sale. And most of the time, these professionals do not instantly jump on the short sale opportunity. They will exhaust all available solutions to resolve the current problem before even considering a short sale.

{

For assistance in ensuring successful Myrtle Beach short sales transactions, contact Jerry Pinkas Real Estate Experts now.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your partners in success Myrtle Beach short sales.

Myrtle Beach Short SalesMany homeowners who have more mortgage debt than what their home is actually worth are now considering the possibility of Myrtle Beach short sales. It doesn’t only help them avoid foreclosure; it also helps them walk away from their mortgage debt without much damage to their credit rating.

Despite this, however, pursuing short sales can be difficult and stressful. The process involves lots of obstacles and hurdles that a homeowner will have to overcome. One of these is getting the lender’s approval. For most lenders, short sale is not the immediate answer to delinquent mortgages. Most will even consider and exhaust all other possible solutions to resolve the situations before thinking about the possibility of a short sale.

And this is only the first step. There are lots more hurdles that you as a homeowner would have to go through in order to short sell your home.

If you want to ensure successful Myrtle Beach short sales, follow these tips:

  • Work with a suitable and experienced real estate agent.

Real estate agents help you ensure a smooth buying or selling process. If you are considering pursuing a short sale, make sure that the real estate agent you are working with is experienced in short sales. You can do so by asking the agent if he or she has experience in short sales. If so, ask him or her how many short sale transactions he or she has closed, how many failed. Also ask for work references that you can contact to inquire about the agent’s services.

Do not immediately believe an agent when he or she says that they have certification in short sales real estate and that they have gone through a lot of short sale transactions. Remember that it’s easy to say these things. You need them to prove their statements through client references and actual certifications. Note, though, that a certified real estate agent doesn’t mean he or she can actually help you succeed in short selling your home. Keep in mind that the more experienced the agent is, the more suitable he or she is in helping you.

  • Have a clear and agreed understanding of the Myrtle Beach short sales terms with the lender.

When you have obtained the approval of the lender, you need to ensure that you both understand the terms and consequences of the short sale process. Put this in a written document that you will both sign. Include in this written document the terms that you and the lender both agreed on with regard to paying the difference left from what the house was sold for and what you owe to the lender.

Often in a short sale process, the amount the house was sold for does not cover the amount that the homeowner or home seller owes to the lender. It depends on the lender whether or not he or she wants that difference to be paid. If so, the payment terms, which both lender and seller agreed upon, should be written down and signed by both parties.

  • Seek a real estate lawyer

The short sales transaction involves lots of delicate financial issues including tax and personal finances. Although you are already working with a real estate agent, you still need to consult and confirm with a real estate lawyer everything that is put into a written document before you sign it. You need to ensure that you are not signing something you don’t agree to. Have a real estate lawyer go through each document and seek his or her feedback on the matter – whether or not there are some clauses that need to be edited, removed, or added.

A short sale transaction is truly helpful for homeowners who have failed to keep up with their mortgage payments due to unforeseen financial problems. On the other hand, it is really tricky to work through, so the seller needs to have patience and know some tips and tricks in order to ensure success.

Contact Jerry Pinkas Real Estate Experts now for more tips on Myrtle Beach short sales.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your partners in successful Myrtle Beach short sales.

Myrtle Beach Short SalesSuccessful Myrtle Beach short sales often depend on how the proposal was made and presented to the lender. Getting the lender to approve of a short sale is quite tricky and sometimes difficult, requiring a lot of time and effort from the buyer. However, this is the most important part of the sales process. Without the lender’s approval, the sale won’t go through. If the seller has more than one mortgage on the property, you as the buyer will have to impress all the mortgage lenders in order to purchase the house.

To ensure the lenders’ approval, your Myrtle Beach short sales proposal should consist of the following aside from your application form and authorization letter.

  • Specific purchase price agreed by you and the seller.

When getting the approval of lenders, there is no room for offers and negotiations. They won’t allow you to make offers or negotiate. In fact, they wouldn’t be impressed if you asked them if they would take a large amount of dollars for the short sale for the property. They would be more impressed and more than likely to approve your proposal if you specified a reasonable amount that you would be able to pay without difficulty. Keep in mind that having the mortgage paid off along with the interests owed to them is more important to them than selling the property in a higher amount.

  • Evidence of the seller’s incapacity to continue paying for the mortgage

In order for the lender to approve a short sale, he or she must recognize and believe that the seller is no longer able to continue paying for the mortgage. You and the seller should be able to prove to the lender – through your proposal – that there is no other way to save the mortgage loan – and the lender’s money and profit on the property – other than a short sale.

Some of the documentation you can include as evidence are a hardship letter from the seller, where he or she states the current situation he or she is in, divorce papers, delinquent accounts, state of bankruptcy, repossession of property and other assets, bank statements, and disconnection letters from utility providers.

  • Copy of the property’s appraisal

If the appraisal reveals a low value for the property, include it in your proposal. If not, you can consider a broker’s price opinion if it says the house is worth less than the loan. Your goal here is to show the lender that reselling will not be an option as the property’s current value will not satisfy the amount owed to the lender.

To support your statement, include proof that holding on to the property longer would only cause the lender to lose more money. You need to establish to the lender that the only option left to save the loan is to approve the short sale.

  • Costs and liabilities in maintaining the property

Before taking into account the possibilities of Myrtle Beach short sales, lenders will often try to keep the property and look at other options. And you don’t want this to happen. So you need to make the lender realize how much it would cost him to keep the property. Again, the goal is to show the lender that the only option to make money out of the property is through a short sale. You can include photos of the areas of the house that need repair as well as estimates of the repairs.

Contact Jerry Pinkas Real Estate Experts now for more information on Myrtle Beach short sales.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your partners in successful Myrtle Beach short sales.

Myrtle Beach Short SaleToday’s housing market is brimming with possibilities for a Myrtle Beach short sale. Despite these possibilities, a short sale transaction is bound to be long and tiring. Although the process has been improved over the years, it can still be exhausting and frustrating especially if you don’t know the ins and outs of the transaction.

Here are 10 easy steps that will help you close the Myrtle Beach short sale in no time:

  • Look for potential short sales.

Instead of honing on the properties listed as a short sale, look for those that are at risk of being foreclosed. To do this, you can search online courthouse listings and look through legal ads. Alternatively, you can also seek a real estate agent who can serve as your buyer’s agent to help you look for potential short sales in the area where you want to buy.

After identifying potential short sales, find out how much debt the homeowner has on the mortgage and compare this with the home’s approximate value. Keep in mind that you are looking for a home that is high mortgage debt and a homeowner who most likely will not be able to pay off the debt and will have difficulty selling the house to repay the mortgage loan.

Also, include in your assessment whether or not the homeowner has equity that can be used to pay the loan. This information is not readily available so you or your real estate agent may have to do some digging to be able to obtain these details.

  • Visit and take a tour of the property.

Once you have shortened your list of potential short sales based on its costs and mortgage, take time to visit each property that was left on your list. While touring the property, take note of its physical state and find out whether or not it needed a lot of repair.

You need a home that needs a lot of repairs to decrease your competition in buying the property. Most average buyers will think it is too expensive to pay for a cheap pre-used home only to find out that they will have to spend money on the necessary repairs.

  • Conduct some research on the property.

Find more about the property including how much it was bought for the first time and the changes in its value. Also, if you can, verify the total amount owed on the property and confirm whether or not there are additional mortgages on the property. This is especially important if you know you’re not going to hold onto the house for longer and plan on selling it in the future.

  • Obtain information on the liens and mortgages.

Aside from the basic details and financial background of the property, you also need to know more about its liens, mortgages, and lenders. You can ask the seller or the seller’s agent to get these details.

  • Plan how you will be able to pay for the property.

Once you have all the information that you need, work with your real estate agent on how you’re going to be able to propose an irresistible financing payment scheme to the primary lien holder. Keep in mind that in a Myrtle Beach short sale, you need to move quickly to be able to gain approval from the lenders involved. Once they approve of your proposal, it will be easier to close the sale.

  • Find the right person to speak with.

After preparing and finalizing your proposal, you need to be able to find the right person to speak with about the short sale. Directly negotiating with the decision- maker will make things much easier; although finding the right person is quite difficult. To find the decision-maker, it is suggested that you contact the loss mitigation department or the resource recovery department of the primary mortgage lender.

Don’t forget to get an authorization letter from the seller or the homeowner to prove that you are a potential buyer of the property. This will tell the seller that you need to discuss buying the house and the mortgage situation.

  • Complete the required short sale application from the lender.

Most lenders require short sale buyers to complete an application. Find out whether or not the lender you are negotiating with requires the same thing. If so, get a hold of the application and complete it.

  • Complete all other necessary requirements.

There may be additional requirements from the lender. It’s important that you have completed all necessary requirements and documentation so that you can present everything on your second meeting with the lender. Again, you need to move fast to close the sale quickly.

  • Negotiate with the lender.

After presenting your completed requirements to the lender, it’s now time to negotiate the purchase price. Be prepared, as the lender will most likely have a counter offer to your proposal. Work to compromise with the lender. If you feel that your needs are not being met, keep in mind that it’s alright to walk away.

  • Close the deal.

When all parties agree and are happy with the arrangement, you need to put everything into writing. These should be officially recorded and signed by all parties involved. Make sure you give each party a copy of the contract and if possible, ensure that they understand each term in the agreement.

Give Jerry Pinkas Real Estate Experts a call now for more Myrtle Beach short sale tips.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your Mmyrtle Beach short sale professionals.

Myrtle Beach Short SalesBuying homes under an unpaid mortgage is a good investment and it helps to know a little more about Myrtle Beach short sales before going through the process. You will need to learn everything that you can about this form of real estate investment especially since there are currently a lot of homes listed as a short sale.

A short sale happens when the homeowner is no longer able to continue paying for the property’s mortgage and the lender agrees to sell the property at mortgage payoff amount. To be able to remove the delinquent debt on their books, the lender will accept a lower amount than what the homeowner actually owed. The remaining balance will be forgiven as long as the mortgage amount has been paid.

Myrtle Beach short sales can be a hit or a miss

There are three key players in a short sale transaction: the buyer, the seller, and the lender. They can be affected by the process in varying ways:

A short sale transaction can be a hit or a miss for a seller, depending on how one looks at the situation. By choosing to sell his or her property as a short sale, the seller or the homeowner loses his chances of making some money out of the sale. On the other hand, when the property is purchased, the seller can walk away from the house without any remaining unpaid debts, although without money to help in moving to another house as well. Even though it will not badly damage the seller’s credit, a short sale transaction will still be recorded on his or her credit report.

Buyers benefit from short sale transactions considering the amount of money they saved from the purchase. On the other hand, the amount that they saved will most likely be spent on repairs and renovations. For some, this can be depressing since the reason they went after short sales is to save money. But for others, they look at it as an opportunity to personalize the house and make it their own. This is especially true for those individuals who like to purchase pre-owned houses and make some renovations to add their personal touch.

For lenders, they will lose some of their profits and this is probably the reason why they don’t instantly turn to short sales when one of the homeowners becomes delinquent in paying their mortgage. On the other hand, when compared with the financial loss that they will surely receive when the property forecloses, most lenders would gladly choose to approve a short sale.

When do Myrtle Beach short sales become a miss?

According to real estate experts, there are two situations when a short sale is certain to fail.

  • If there has not been any notice of default yet. If the homeowner has not received a notice of default, it means he or she is not that far behind the payments and would still be able to catch up. Should this be the situation, a short sale is not recommended as it will take a longer time to get the approval of the lender.
  • If the seller has already filed for bankruptcy, there is not a chance a short sale will ever happen. Short sales are, in some ways, not allowed in bankruptcies as they are considered a collection activity. As a result, lenders will not approve a short sale for a seller who has filed for bankruptcy.

Should you consider buying short sales?

The discounted purchase might be enough to convince you to pursue a short sale transaction. However, there are other benefits that you could gain as a buyer of short sale properties:

  • The lender may offer financing terms since they will be more than happy that the mortgage will continue, even though they will most likely not earn as much profit.
  • The seller will be willing to work with you to push the transaction through because he or she is eager to get away from the debt.

If you decide to proceed with a short sale transaction, hiring a real estate agent is highly recommended. Short sales are complicated and time consuming real estate transactions and you would definitely need all the help that you can get.

Aside from hiring a real estate agent to help you go through a short sale transaction, it also helps to know the primary reason why lenders will agree to a short sale. Since they are bound to lose money in a short sale, most lenders do not immediately agree to such a transaction until they are sure that they have exhausted all other possible solutions that wouldn’t cost them as much money.

But if you know what will make a lender agree, it will make the entire process less difficult and move in a faster pace. You will have to understand that the primary goals of lenders in every real estate transaction is to earn money or not lose too much of their profit. Hence, you might need to point out that by allowing the property to get foreclosed, lenders will have to go through a costly and equally lengthy foreclosure process. As a result, they lose their profits as well as a whole bunch of their money.

Even if they managed to maintain ownership of the property and not lose their profits, they are still bound to lose money in maintaining the house and paying for its taxes.

Basically, lenders look at short sales as the lesser of two evils and they will grab the opportunity to go through it rather than lose both their profit and money.

Give Jerry Pinkas Real Estate Experts a call now to learn more about Myrtle Beach short sales.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your Myrtle Beach short sales expert.

Sellers

How Fast Can The New Short Sales Process Be Closed?

Closing a short sales process has never been quick and stress-free. Despite this,... 


What Consists The Best Myrtle Beach Short Sales Proposal?

Successful Myrtle Beach short sales often depend on how the proposal was made and... 


10 Steps To Closing That Myrtle Beach Short Sale

Today’s housing market is brimming with possibilities for a Myrtle Beach short... 


Read More Posts From Sellers

Buyers

Brushing Up On The Pros And Cons Of Myrtle Beach Short Sales

A lot of real estate investors and home buyers today are opting for Myrtle Beach... 


Top Myrtle Beach Short Sales Myths, Explained

Myrtle Beach short sales is indeed a beneficial alternative for homeowners to resolve... 


Short Sales Tips For Sellers, Buyers, Brokers, And Lenders

There are several parties involved in a short sales process: the seller, buyer, broker,... 


Read More Posts From Buyers

Myrtle Beach Real Estate News

What Do You Need To Know About Short Sales

Myrtle Beach short sales used to be regarded as a bit of a no-no to eliminate home mortgage obligations, however today with the housing uncertainty and the present economic challenges, they are once again not only more accepted , but happening more often. There are plenty of property owners who have discovered the exact help they will need to stay in... [Read more of this review]


Read More Posts From Myrtle Beach Real Estate News