The Temecula Valley has many homes for sale that are in the category of a short sale.
What is a Short Sale?
A short sale is simply when a homeowner tries to sell their home for less than they originally agreed to pay.
In order to do this the homeowner must fill out documentation provided by the bank called a “Short Sale Package”. The short sale package includes information about the borrower/home owner’s financial situation. If the bank is going to take less than the borrower originally owed them then the bank wants documentation stating why the borrower cannot pay the payments that he/she had previously agreed to pay and ultimately must sell the home to get out from under the debt.
When the short sale is approved then the borrower/owner can accept an offer from a buyer who agrees to pay the current market value, based on recent sold comparables.
Short sales take time to process but once they are in the status of “Approved Short Sale”, then the escrow can go through and a new buyer is able to purchase the home. Some buyers who are waiting for a short sale to be approved simply give up waiting. Then the listing agent looks for another buyer. This is a good way to find a home…..if you are going to purchase a short sale make sure it is an “Approved Short Sale”.
Banks will do a BPO, “Broker Price Opinion”, which is like a mini appraisal that determines the current value of the home, based on comparable sold sales.
So there is a quick explanation of the difference from a Short Sale and an Approved Short Sale.
~ If you are thinking about purchasing or selling your home whether you are a “First Time Buyer”, or an “Investor”, who wants to work with a local area expert, contact us toll free at 866 621-0155.
We are experienced Real Estate Brokers offering excellent and individualized Customer Service. If you are looking for Temecula Bank Owned Homes, Murrieta Bank Owned Homes, or if you are thinking of living in the surrounding areas of Temecula, Murrieta, Wildomar, Menifee, Winchester, Fallbrook, Southwest Riverside County, or North San Diego County, please contact us for a private tour of the area.