11 Things To Know About Buying A Short Sale Home In Wilmington, NC

11 Things To Know About Buying a Short Sale Home in Wilmington, NC

Now-a-days you can see that most of the listings are short sales. Those who are looking to buy, can get a good houses and sometimes below market price.

Here are 11 things about buying a short sale home in Wilmington NC, which might help you to buy short sale listings in this market:

1. Educate Yourself About Short Sale:

You need to know more about short sale and difference between short sale and other sales (regular sale & reo sale). Whether it’s the right buy for you or not. If you want to buy as soon as possible and cannot wait couple of months then short sale is not the right choice to write an offer. But if you can wait couple of month then look for short sale homes also in your search criteria and ask your agent to show short sale listings also.

2. Get Pre-Approval:

This is important whether you are writing offer to short sale or other type of listings. Pre-approval will make your offer stronger and gets higher priority than others who are submitting without pre-approval. So, make sure you are pre approved with a good lender before your home search.

3. Time Frame:

It takes time to know the final approval from the seller’s lender after you submit your offer, may be 1 month, 3 months or more. You need to have patience to wait that long for your dream home.

4. Offer Acceptance:

Even though, seller accepts your offer, doesn’t mean that your offer has accepted and you can move forward with that offer. Once you submit the offer, the seller’s agent forwards to the seller’s lender for final approval. The lender may accept it, reject or counter back to you with their price based on their own appraisal price.

5. Other Liens:

If other liens like HOA, tax liens and others where the seller owes to those lien holders , could also be a hindrance to the final approval of the sale. Most of the time, bank approves to pay all the liens but sometime they don’t, in that case either the seller or buyer or both needs to contribute to get that good deal.

6. Writing Offer:

Write a good offer based on the market value, don’t think that it’s a short sale, you can write a ridiculously low offer and bank will accept it. No, once you submit the offer, bank will also do their part by ordering appraisal to check the market value. They compare the appraisal value with your offer price. If you really like the house then write your best offer so that you can have higher chance of getting that house. Now, write only for those houses which you really like and not all short sale listings.

7. Check Listing Agent:

Check whether the agent representing the seller has experience in short sale or trained /certified agent in short sale, this shows that the agent can handle the short sale correctly from the beginning itself from submitting the package to getting approval from the lender. If the buyer side agent is also experienced is short sale then that would be a plus point to the buyer.

8. Follow up:

You need patience, once you submit your offer, don’t call your agent every other day for the status. The lender takes time depends on their work load to order appraisal or BPO (Broker Price Opinion) to determine the market value. This process itself sometime takes 30 days and another 30 or more days for final approval. But make sure, you ask your agent to follow up with the listing agent every other week or so for the latest update if any.

9. Backup Offers:

If you really like the house and somebody already wrote an offer, then ask your agent to submit a backup offer, if they are accepting the backup offers because sometimes the first buyer may walk away from the deal due to long waiting period or due to some other personal reasons.

10. Terms & Condition:

All the short sale listings are “As-is” sale, but that doesn’t mean you have to buy a house without any inspections. You have the right to do all the inspections but the seller will not fix anything if there’s any repair. It depends on you whether you are satisfied with the inspection reports and repairs(if any).

11. After Approval:

After getting the approval letter from the lender then work on to remove your contingencies(inspections, loan approval) and submit your initial deposit to the title within the specified time so that you can close the escrow on time and move to your home.

Buyers, you can get a deal with a short sale, but it comes at a price. If you have the time and the patience you could be rewarded handsomely.

Posted By Nilesh Jethwa CDPE Wilmington NC



Bookmark & Share

Wilmington NC Short Sale//Who Pays My HOA In Short Sale?

Who Pays My HOA In Short Sale?

Nilesh Jethwa  Wilmington NC Short Sale Expert

Most of the homeowner who has Home Owner Association (HOA) has this question when they cannot afford their monthly mortgage payment that “who pays my HOA in short sale?”

When the homeowner is in financial difficulties, sometimes they cannot afford to pay the home owner association fees along with other payments. Even though, it’s much lower payment than the mortgage payment but believe me they have the right to foreclose if you miss the HOA dues for couple of months or more, depends on the association rules and regulations. 

But in this tough market, most of the association doesn’t want to foreclose but most probably they will send it to collection department to collect it from the home owners for the due amounts.  They add their additional fees also with that balance due amount when it goes to collection.  Now, if you are not paying the association fees, they will put a lien on your property, which will make it hard to sell the property without clearing their dues.   

If you are doing short sale then sometime the lender pays all of your HOA dues but not all the banks pays for it.  You need a trained and experienced short sale agent on your side to negotiate with the lender to pay the HOA dues or make some kind of arrangement with HOA so that you can complete the short sale process. 

Trust me, HOA people is hard to deal with, they don’t want to give up any of their due amounts and most of them, don’t even care whether the homeowner is facing foreclosure or not.  If the lender doesn’t pay the HOA balance dues and no one else pays then you cannot complete the short sale even if the lender approves the short sale.  So, it is really important that you always work with an experienced short sale agent in your area, who knows how to handle the short sale process.

If you have any questions or need my assistance in selling your house then please contact me at 910-622-0319 or email me.  I sell not only in Wilmington NC but also the Pender and Brunswick County area. So call your local area short sale specialist for your short sale.

www.shortsalewilmingtonnc.com



Bookmark & Share

Wilmington NC Short Sale Top 5 things to do before you Short Sale Your House

Top 5 things to do before you short sale your house in Wilmington NC

Short Sale in Wilmington NC is a long process and it takes times to complete the process and I know it is a difficult choice for you to sell your house which you bought with a good intension to live there or raise your family. But due to certain circumstances, now you cannot afford to keep the house and cannot qualify for loan modification or refinancing. At this point, one of the best options is to do short sale.

Before you decide on short sale, these are the 5 things you need to know which I think is important in your decision.

1. Educate Yourself with All Options

First thing, you have to do is check on internet and educate yourself about different options to avoid foreclosure as soon as you think you will be in trouble. I guess you are already doing that by reading my blog. You can also Google or search on Yahoo on loan modification, deed-in-lieu, bankruptcy, foreclosure, short sale and other available options to avoid foreclosure. Ask professionals (realtor, CPA, attorney) for various options who are familiar with options to avoid foreclosure. It’s better to be pro-active to solve any issues rather than waiting or ignore the problems.

2. Contact Your Lender or HUD Counselors

Once you know that it would be hard to keep paying the payment or when you missed your first payment, contact your lender directly for help in modifying your loan or refinance. Ask your lender what all documents needed for modification or refinance based on your qualified program. Submit all required documents and keep following up with the lender (I know, its time consuming but you are trying to save your house so, it’s ok for that hard work). You can also contact your local HUD counselors for help to negotiate with the lender so that you can keep your house. You don’t have to pay any fees, it’s a free service. Avoid all the scammers who ask for up-front fees or wants to sign your deed to them.

3. Consult Your CPA or Attorney

If your lender denied your loan modification or do not qualify for loan modification due to some reason and cannot afford to own your house, check with your CPA or tax attorney for any tax ramification or any other legal questiosn for doing short sale. The new Mortgage Forgiveness Relief Act 2007 allows you to relief from the tax if it’s your primary residence. Check your scenario with these professionals if you have to pay any taxes or not.

4. Documents required – if going forward for short sale

If you decide to go for short sale then you are required to present these documents to submit to the lender for short sale approval. It’s always to better to have these documents before you start the short sale process. These documents are as follows:
– Copy of your recent mortgage statements
– Last 2 years tax return
– Last 2 paystubs
– Last 2 months of bank statements
– Hardship letter which explains your hardship
– Financial statements which includes your incomes and expenses
– Any other documents to prove your hardship

5. Work with an experienced short sale agent

This is one of most important step in short sale, hire an experienced agent, if that agent is Certified and trained in short sale then that would be a plus. An experienced short sale agent knows how to negotiate with lender, how to prepare the short sale package and how to market your property to get buyer for your house. Before hiring, check that agent’s web presence, ask for reference and check whether they have successfully closed any short sale transactions.

If you are in Wilmington , NC or near by area and need my service for short sale, don’t hesitate to contact me at 910-622-0319, your expert short sale real estate agent in Wilmington area. www.shortsalewilmingtonnc.com.

posted by nilesh jethwa