May 19, 2024


Mad about real estate

A Bank Short Sale – Research The Specifics

A bank short sale allows for a buyer to purchase a property for less than market value; however, for a successful real estate transaction of this sort, it is important to quickly and correctly identify and research certain specifics concerning the property in question. These specifics include indentifying the correct and current owner of the property, how much is currently owed on the property, how many mortgages are associated with the stated property, if and when foreclosure proceedings have been associated with the property, and how much the real estate is worth at market value. It is not only important to correctly identify these characteristics, but to do so in a timely and quick manner as short sales are only offered for a limited time before a foreclosure is pursued.

Fully researching a bank short sale opportunity can save valuable time and increase the likelihood of a successful real estate transaction. The most efficient way to research a potential property is to check public records. The first fact that you need to identify is the current and correct owner of the property. The loan officer at the attending bank or lending institution can give a name. However, this name is not always the direct owner of the property in question. A property can be owned through companies or corporations and ultimate ownership may trend through several different levels of authority before terminating at the proper owner. To determine the proper owner you can question an officer at the local courthouse. They should be able to give you a name by searching through tax and property records.

Once you have identified the proper owner of the property in question, then you can begin the process of purchasing a short sale. However, you must also determine if the property is worth the trouble and risk of the process. You have to find out how much the property is indebted to the bank or lending institution. The loan office can assist you with this aspect of the research or you can once again reference tax records. This will help give you an idea of how much to offer for the property. Remember that the bank only wants to regain the capital lost through the initial defaulted loan or mortgage.

It is also a good idea at this point to check the official documents to see how many loans have been borrowed or mortgages issued against the real estate in question. If there is more than one loan or mortgage, then the property is probably not a good candidate for a short sale as the lending institution will most likely force foreclosure proceeds. If foreclosure proceedings are initiated, then a short sale is not possible as this procedure is meant as a last financial option to avoid foreclosure.

One more aspect that should be thoroughly researched before you enter into any bank short sale is the comparative market value of the associated with the real estate in question. This will help you decide which properties are worth pursuing and which ones are probably bad investments. Look for properties that have a high market value.

The key element to successful short sales is research. By knowing the financial and legal details of the property’s history, an investor can better assess the potential value of a given real estate transaction.