By 2010, almost one-quarter of U.S. homeowners had underwater mortgages, with balances exceeding their property values. But many of those homeowners are venturing out into the home buying arena. Fortunately, homeownership dreams don’t have to end when you sell your home through a short sale.
How is a short sale different from a foreclosure?
Short sales are different from both traditional home sales and foreclosures. In a traditional home sale, you work with only the seller and the seller’s agent to make an offer. In a foreclosure, the lender has already bought the property, so you’ll make an offer directly to the lender, without a buyer involved.
Is there a refund for buying a short sale home?
If you’re thinking about buying a short sale home and want expert advice, reach out to a Redfin Agent who can talk to you about your options. *The buyer refund is calculated based on the final sale price of the home, and is subject to lender approval and a 2% minimum commission.
What’s the average offer for a short sale house?
Here’s how it generally works: When a short sale home comes on the market, the first offer will most likely be a tad below list price. The second, at list price. The third offer will be slightly higher, maybe by $1,000 or $2,000. The fourth offer will be significantly more.
Do you need a down payment for a short sale?
There are exceptions to the normal waiting periods for a conventional loan. To qualify for these exceptions, you need a minimum down payment of 10 percent, and written proof that the short sale was the result of extenuating circumstances. Verify your eligibility for a new mortgage.
Is there a three year waiting period for a short sale?
In the 12 months prior to the short sale, you made your mortgage payments on time. If your mortgage was in default at the time of the short sale, FHA requires a three-year waiting period before applying for a new home loan. FHA’s three year waiting period starts from:
How long does a short sale stay on your record?
It depends on what you negotiate with your lender. Some will not report it if the homeowner makes partial restitution to cover some of the lender’s losses. If the short sale is reported as a serious delinquency or derogatory item, it can stay on your record for up to seven years.
