Purchasing a Short Sale Home in Temecula, Murrieta, Winchester, Menifee Areas

What is a Short Sale?

When a Seller decides to sell their property and owes more money on their mortgage loan than the property is worth, they list the property as a “Short Sale”. The listing agent contacts the Sellers mortgage company on behalf of the Seller and informs the mortgage company (also known as the Lien Holder) of the Short Sale listing. Once an offer to purchase the property is submitted to the Seller and accepted by the Seller, the listing agent submits the offer with the Sellers Short Sale Package to the Lien Holder. The accepted offer is subject to the Lien Holders terms, conditions and approval of the Short Sale. The Lien Holder starts the Short Sale process by reviewing all the documentation. The Lien Holder will also order an appraisal and/or a BPO (Broker Price Opinion). These documents will provide the Lien Holder with a market value of the property. In some cases, if the Buyers offer is too low for the current market value, the Lien Holder will either counter back to the Buyer or flat out reject the Buyers offer. If the Lien Holder rejects the Buyers offer, the Buyer can always re-submit a new higher offer.

For the Buyer, the Short Sale transaction is very similar to a standard transaction with the exception that all terms and conditions of the Buyers offer are subject to the Lien Holder(s) approval. In some cases, the Seller may have more than one loan on the property. If this is the case, all Lien Holder’s will need to agree to take less than what is owed on the loan and approve the Short Sale in writing and submit a Short Sale Approval letter to the Seller.

There is no guarantee the Lien Holder will agree to take less than they are owed, even though it saves them money on attorneys’ costs, foreclosure companies’ costs, eviction costs, holding costs, etc. However, in today’s market it appears that more Lien Holders’ are approving the Short Sales. The process can take anywhere from 30 days to 90 days for the Lien Holder to approve the Short Sale.

Once the Short Sale has been approved by all Lien Holder’s and the terms and conditions of the Short Sale have been reviewed and accepted by both the Buyer and the Seller, the Buyers accepted offer to purchase the property can start as a normal transaction. Escrow is open and the time frames begin. Typically time frames begin from the date the Lien Holder approved the Short Sale which is stated on the Short Sale Approval letter. The Seller will provide all documentation to the Buyer required by California Real Estate Law. The Buyer will be given a time frame to complete the investigations, review reports, review and accept disclosures and obtain full loan approval.

Every broker handles their Short Sale transactions differently. At Berkshire West Realty we have a very high success rate on our Short Sale Approvals.

If you have any additional question, please don’t hesitate to call our office at 951-375-0367. The agents at Berkshire West Realty enjoy sharing their knowledge.

Purchasing a Bank Owned Home in Temecula, Murrieta, Winchester, Menifee Areas

Berkshire West Realty Agents are REO (Real Estate Owned) Specialist. Bank Owned properties can be a great investment. Below is important information that every Buyer should know when purchasing a Bank Owned property.

When an offer is submitted from a Buyer to purchase a Bank Owned property, the Bank usually counters the Buyer(s) with a verbal counter asking the Buyer(s) for their “Highest and Best” offer. A Buyer can verbally counter back to “Remain the Same” with the current terms originally submitted or the buyer can verbally counter back with new terms. This verbal counter process saves all parties time from signed written counters going back and forth between the Bank and the Buyer(s).

Most Banks take any where from 2 to 7 business days to respond to the Buyer(s) offer. Once the terms are verbally agreed upon, the Bank will issue a “Banks Counter Addendum” for the Buyer to sign with the new terms agreed upon in writing. Keep in mind, the Banks have strict timelines. If a Buyer fails to close escrow on or before the scheduled close of escrow date, the Bank will expect the Buyer to pay the Bank a per diem late fee for each day beyond said closing date.

Make sure you and your Real Estate Agent read the “Banks Counter Addendum” thoroughly. The agents at Berkshire West Realty are knowledgeable with the Banks Counter Addendums and can answer any questions you will have to help you understand all of the terms.

Most Bank Owned properties are sold in their present “AS-IS, where is” condition, including all defects, known or unknown. Banks are exempt from most Real Estate Disclosures, due to the fact the Bank acquired the property either as a result of a foreclosure action, result of a like or similar action such as a deed in-lieu of foreclosure or as part of a purchase from a prior servicer.

In most cases, neither the Bank nor any person acting as the Banks representative has occupied the property and neither warrants or represents that the property or any alterations or additions which may have been made to the property conform to local building codes, zoning requirements or any other applicable laws, rules or regulations.

The Buyer has the opportunity to inspect, examine and make a complete review of the property prior to the close of escrow. The agents at Berkshire West Realty always recommend a buyer obtain a home inspection by a licensed home inspector.

“Time is of the Essence” for all Real Estate transactions. A Buyer’s earnest money deposit can become non-refundable after a certain time period during the transaction. Generally, the Bank allows the Buyer(s) to conduct their inspections and obtain full loan approval during the due diligence period. The agents at Berkshire West Realty will help you understand all inspections, reports and disclosures you receive during this period so you can make the best informed decision. Just remember it is very important for you and your agent to keep track of the timelines.

Purchasing an Investor Owned Home

Purchasing an investor owned home can be very rewarding. Most investors purchase properties for less than market value with a profit in mind when the property is sold to the new Buyer. Most investors, if not all, do extensive research before purchasing a property. They investigate how much it will cost for repairs, new carpet, new paint and sometimes a new kitchen and new bathrooms. They also investigate how much money they will net from the sale of the property. If the numbers make sense to the investor they will purchase the property and hope for a fast turn around time to sell the property (also known as a Flip).

For the Buyer, they are buying a newly remodeled home with new carpet, new paint, etc. with the luxury of not having to do any known repairs or updating to the property. It can be very satisfying to a buyer who just wants to move-in and enjoy the home.

For a list of investor owned homes, please contact Berkshire West Realty at 951-375-0367 and one of our Buyer's Agents will be happy to contact you to find that special property that meets all of your wants and needs.

Overview

Property Search (Multi-Regional - Residential) Dream Home Finder Why Select Us To Represent You When Buying Your Next Home? Selecting Your Next Home Short Sale, Bank Owned and Investor Owned Properties Home Buying Info Home Improvement Home Gardening Info Home Moving Assistance Area Info Buyers Request Testimonials

Berkshire West Realty
• Murrieta, CA 92562
951-375-0367 • info@BWestRealty.com