The Southern California real estate market is in a constant state of change. Whether up or down,
optimistic or not, it will keep you looking for the next turn.
The market values of properties can work against you in a short sale more than you would think. Lenders are not fools and they are completely aware of what the market values are at any given time. If the current lender thinks that they can get a better deal on the home in foreclosure then that may wait it out. The only real time they will accept a short sale is when the short sale price meets the market value.
Another reason is that the seller had paid too much for the home to begin with. If the home sold for 500,000 just a short few years ago and now is for sale 100,000 less, it does not mean that the buyer has just gotten some free money. It means that the seller has no equity at all in the property.
The market values of properties can work against you in a short sale more than you would think. Lenders are not fools and they are completely aware of what the market values are at any given time. If the current lender thinks that they can get a better deal on the home in foreclosure then that may wait it out. The only real time they will accept a short sale is when the short sale price meets the market value.
ReplyDeleteAnother reason is that the seller had paid too much for the home to begin with. If the home sold for 500,000 just a short few years ago and now is for sale 100,000 less, it does not mean that the buyer has just gotten some free money. It means that the seller has no equity at all in the property.
home buyer