Many of my clients who are lookning at Charlottesville homes for sale are curious about short sale properties and foreclosures.
A foreclosure is a banked owned home, but a short sale is still owned by the homeowner who in this case owes the bank more than the market value of the house. The homeowner will have missed at least one mortgage payment and is hoping to sell the home before the bank forcloses. Because the homeowner is selling the house short, ie for less than is owed to the bank, the sale is contingent upon bank approval. And herein lies the problem.
You write an offer on a shortsale home and it is presented to the seller, the seller accepts the offer, but you aren't done yet. The offer now goes to the bank for approval. Most banks are very slow to decide on these short sale offers. It can take three, four, five even six months before the bank makes a decision. All this time they are also still taking offers; so it is possible that an offer that is better than yours could come in while you are waiting. In addition another branch of the bank is still proceeding toward foreclosure. It is possible that the home could be foreclosed on before the other part responds to your offer.
A short sale can be an opportunity to get a great deal. In addition to the good price, short sale homes are usually in better condition than a lot of foreclosures since the homeowner is still living in the home.
However, if you are a first time homebuyer searching Charlottesville homes for sale you should omit short sale properties from your search. With the long delays that usually accompany these transactions, you risk not being able to meet the deadline for the $8,000 First Time Homebuyers Tax Credit. With all of the homes for sale on the Charlottesville real estate market, your real estate agent will be able to find you a selection of well priced homes without having to resort to looking at short sales.
Contact Pam Dent, e-PRO, SRES, NHD, REALTOR®, Real Estate III, Charlottesville, Virginia at 434 960-0161 to buy a property in the following areas in Central Virginia: Charlottesville, Albemarle County, Keswick, Glenmore, Ivy, Crozet, Earlysville, Free Union, Cismont, Scottsville, Fluvanna County, Palmyra, Lake Monticello, Louisa County, Louisa, Mineral, Spring Creek, Orange County, Gordonsville, Orange, Barboursville, Greene County, Ruckersville. Email Pam Dent.
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