Julington Creek Plantation Short Sale Information 32259

Should you consider buying a "short sale" home in Julington Creek Plantation?

     This is an excellent question.   The answer must first take into consideration what a "short sale" actually is.   When a home owner needs to sell their home but the fair market value of their home is less than the remaining balance of their loan, they are considered to be "upside down" on their loan.   In such instances, the home owner(s) will not clear enough money from the home's sale to pay off their mortgage balance and cover real estate brokerage fees, taxes, and transaction costs. With the recent fall of home prices, many home owners now find themselves in this situation. A solution to this dilemma is found through the use of a short sale.

     A short sale is simply an agreement between the lender (or mortgage holder for a property) and the home owner. It permits the home owner to sell their home at fair market value to a qualified buyer. The lender must approve the buyer's offer before the transaction moves to closing. The lender agrees to release their lien against the property and transfer an unencumbered title to the buyer. The lender may or may not hold the seller liable for any remaining deficiency between the proceeds for the sale and money still owed. This issue is between the previous home owner and the lending institution. They buyer is not responsible for this unless otherwise agreed to (very rare occurrence).

     There are some important caveats that you must be aware of as a buyer, however. You need to know these caveats before you consider shopping for a short sale home. First, realize that a short sale is not the same thing as a foreclosure. You are not necessarily getting a bargain when you buy a short sale home. Remember, the purpose of the short sale is to allow the home owner and bank to get "fair market value" for the property. This means that as a buyer, you are purchasing the home at fair market value... nothing more. Don't think that because a home is a short sale that you can get if for a faction of the cost of other homes in the community. In fact, it is entirely possible that other homes for sale in the neighborhood are priced just as competitively.

     Another very important aspect to buying a short sale warrants your attention. You can’t be in a hurry to buy a home. Short sale transactions can take months to execute. Many short sales take over four months to close. And don't ever assume it's a done deal until you actually close on the home. Many short sale transactions have been disapproved by the lending institution just days before the closing. It can be an extremely frustrating experience for both the buyer and the seller. Ultimately, in a short sale it is the lending institution, not the home owner, who is calling the shots and making the decisions.

     Also be aware that with a short sale, you are buying the house “as is.” If during your home inspection you discover significant problems with the home, it is doubtful that the lender will pay for any repairs. If you decide to proceed with the transaction, you do so with the understanding that you are getting the house in the condition you found it in.   And since the seller is in hardship, don't look to them for any help with the repairs.

     If you decided to pursue a short sale property, you should always be prepared to close quickly if and when the lending institution decides to close the transaction. This may sound a bit ironic to you, but it is a fact that after months and months of bureaucratic foot dragging, once the lender finally decides to accept your offer and wants to close, you need to do it fast. When a lender does decide to accept your offer and close, there will typically be a 15 or 30-day deadline to close the transaction or the sale approval has to go back to review. So get your home inspections and loan origination procedures completed. Once the short sale lender approves your offer and okays the sale, it is time for you to lock your interest rate and get ready to close fast.

Julington Creek Plantation, Julington Creek, JPC, Homes Sale, Julington Creek Home Prices, Jacksonville FL 32259, Denise Bash, JCP, NW St Johns County, Riveroaks Plantation

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