Benefits of Buying a Short Sale

Short Sale Contract

For sellers, short sales are a favorable alternative to entering the foreclosure process. In a short sale, homeowners agree to sell a house for less than the amount owed on the mortgage loan. This type of sale requires the lender to approve of the deal. In addition to helping the seller protect their credit, short sales can be a great option for buyers as well.

Lower Price:
Not only can foreclosure be devastating to a homeowner, but they can also be costly to a lender. The lender must pay all costs associated with the foreclosure, including those associated with evicting the current owner, as well as any administrative costs. Once the house is empty, the lender must then pay for any repairs and maintenance costs while the house is on the market. To avoid paying these expenses, lenders may agree to sell the property for well under the value of the loan. This presents a great opportunity for buyers to secure a great deal on a home they would otherwise be unable to afford.

Favorable Financing:
Even though a short sale requires the bank to agree to sell the home for less than the value of the current loan, short sales often represent the most cost-effective option for the bank. Rather than continue losing money, or wasting more money on a foreclosure, many banks offer buyers of short-sale properties favorable financing terms to make the sale more attractive. The lender may offer a low interest rate or other buyer-friendly terms to get the property sold and avoid further expenses.

Ready to check out short sale properties in the Denver metro area? Contact the pros at Metrowest – we’d love to show you around!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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