How to Buy and Sell a Short Sale Property

If you are looking for a home in today’s real estate market, you’ve probably noticed the large number of short sales for sale.  So what is a Short Sale?  Also known as a pre-foreclosure, a short sale occurs when a seller is upside down on their mortgage and the lender is willing to accept less than the amount owed on the mortgage.

A short sale benefits a seller because they can avoid foreclosure, the lender benefits because they are able to sell the house before incurring foreclosure costs, and a home buyer benefits because they can purchase a home under market value.  It seems like a win-win-win for everyone, however there are definitely some pros and cons to be aware of.

Some experts say that not all short sales are appropriately priced to reflect under market value.  That means the buyer may not be getting the best deal on a home.  Short sales can also take a tremendous amount of time and patience from all parties involved.  If you decide to sell as a short sale or purchase a short sale property, be prepared to wait.  Short sales take time and even if both the seller and buyer reach a short sale agreement, there is no guarantee that the sale will go through with the lender.

Whether you are looking to sell your home as a short sale or thinking about purchasing a short sale property, it’s important to use an experienced real estate agent.  Our office and agents have the knowledge and experience to help you with any of your short sale needs.

Featured Short Sales Properties – Texas Capital Properties

16508 Jadestone in Leander, TX 78641

Updated home in Blockhouse Creek.

3 bed/2 bath. 1341 sf.

Built in 1993.

$104,000

MORE INFO AND PHOTOS

28 Woodshay in Montgomery, TX 77356

Custom Home on Corner Lot in Estates of Bentwater

5 bed/4.5 bath. Almost 5,000 sf.

Heated Salt-water pool with beach entry.

$449,500

MORE INFO AND PHOTOS

Foreclosure Cases to be Reviewed

Millions of current and former homeowners will have a chance to get their foreclosure cases examined under a new review plan by federal regulators expected to be unveiled in the next few weeks.  It will apply to borrowers who were in some stage of foreclosure in 2009 or 2010.

Estimates prepared by the Office of The Comptroller of the Currency (OCC) believe that 4.5 million borrowers could be eligible for review.  The reviews will be conducted by independent third-party companies hired earlier this year by 14 banks that signed consent orders with the OCC and the Federal Reserve.

The process is one of several continuing efforts to address concerns that surfaced last year over banks use of “robo-signers” – bank employees who signed off on a large number of legal foreclosures and falsely claimed to have personally reviewed each case.

There have also been claims made by a handful of borrowers who allege that mortgage-servicing companies improperly placed expensive insurance coverage onto their mortgage and pushed them into default.

Borrowers may be able to receive compensation if the review finds a bank placed a borrower into foreclosure while receiving partial payments as part of a trial or permanent loan modification.  They may also allow compensation if borrowers provide evidence that the provided the necessary documenation to qualify for a modification but were denied.

 

Short Sale in Bentwater

** SHORT SALE ** Outstanding CUSTOM HOME on huge corner lot in gated community of The Estates of Bentwater. Cul-de-sac street near the LAKE. Heated SALT WATER POOL w/beach entry & spa. Gorgeous upgrades. Gourmet kitchen. Two walk-in closets in master suite. Bedroom down could be second master. Gameroom,bonus room and 3 bedrooms up. Incredible price of $549,900!

28 Woodshay in Montgomery TX

5 bed/4.5 bath

4975 SF/appraisal district

Built in 2005

 

 

 

Bentwater  is a 1,400-acre master-planned community nestled between Lake Conroe and Sam Houston National Forest.  Located just north of Houston, Bentwater is a private, gated waterfront community in Texas that offers three 18-hole championship golf courses.

VISIT TEXAS CAPITAL PROPERTIES FOR MORE INFORMATION

 

National Foreclosure Activity Showing Positive Signs

National Foreclosure Activity Showing Positive Signs

A U.S. Foreclosure Sales Report released by Realty Trac, shows some positive signs in foreclosure property activity.  The report revealed that homes in some stage of foreclosure nationwide represented 31 percent of all U.S. residential sales during the second quarter, which is down from 36 percent the previous quarter and up 24 percent from Q2 2010.

The average sales price of  homes in some state of foreclosure or bank owned was $164,217 in the second quarter.  That’s down less than 1 percent from the first quarter and down nearly 5 percent from the second quarter of 2010.

Pre-foreclosure/Short Sales  jump 19 percent

A total of 102,407 pre-foreclosure homes, also known as short sales, sold to third parties in the second quarter, an increase of 19 percent from the previous quarter.  However, that’s still down 12 percent from the second quarter of 2010. Pre-foreclosure sales accounted for 12 percent of all sales, the same percentage as in the first quarter but up from 10 percent of all sales in the second quarter of 2010.  Some of the states with the biggest quarterly increases in pre-foreclosure home sales included Texas with a 34 percent increase.

Contact us today if you have questions about the foreclosure or short sale process.   Texas Capital Properties

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