Perils and Advice of Short Sale Real Estate Buying in Murphy, North Carolina

Posted by I Love Murphy on

Short sales in Murphy NC Real estate has been on my mind a lot lately because there are a handful of homes out there that are short sales. Last night after writing the Basic Information on Short Sales in Murphy NC article, I felt compelled to continue on with it because there are so many things that be a challenge with them.

You can get a great buy with them, there’s just a few things that you need to know with them.

  1. Has the listing price for the short sale been approved by the mortgaging bank? This is probably the most important question you can ask. If not, who’s to say the bank won’t approve it? I had an instance a month ago where we wrote an offer for more than the list price and the bank did not accept the offer.
  2. Be patient. Like with foreclosures, you must be patient.
  3. Have buyer agency. Make sure you have your real estate agent representing you and giving you good, sound advice. If you don’t feel like they are working for you, fire them and get another real estate agent who is – CALL The Poltrock Team!! 😉
  4. Be prequalified with a bank for a mortgage prior to making an offer or buy in cash. Just like with a bank owned property, money talks and they want to know you have the ability to follow through with your offer to purchase.
  5. You’re not appealing to a seller. Yes the seller is involved and must sign your Offer to Purchase. In many cases though, they don’t care what it will sell for unless they have to bring money to the closing table. You are appealing to the bank and your offer needs to be written so it protects you and so it appeals to the bankers, not a “person.”
  6. Be prepared for stupid requests. Although it won’t be as bad as in a foreclosure, there are a lot of stupid forms you may be required to sign. Smile, grin, and bear it 😉

That’s a great start as to what you should expect from a short sale. Be certain about item #1. Otherwise, there’s a good chance you are wasting your time trying to buy it. If you like the house, have patience, and follow the rest of the advice, there’s a possibility you will get a great buy!

If you would like to know more information about short sales, what to do, and need a Realtor to represent you, give us a call! We’re here for you and in business because of you, so let us know what we can do to do help.

John Poltrock – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call toll free at 1-866-687-7496

 

Previous Related Articles:

Understanding a Short Sale in Murphy NC Real Estate

Foreclosure Houses and Tips to Buying Them in Murphy NC

What to Expect When Offering to Buy a Foreclosure in Murphy NC

Understanding a Short Sale in Murphy NC Real Estate

Posted by I Love Murphy on

Short sales in real estate have been a popular topic not only in Murphy NC, but all over the United States. National media has brought attention to this topic, and many people simply don’t understand what a short sale is. A short sale is not like a real estate foreclosure, which is is where a bank has repossessed a home or land parcel because the borrower failed to make their payments.

Need Help with a Short Sale? Get The POLTROCK TEAM!
Need Help with a Short Sale? Get The POLTROCK TEAM!

A short sale happens when the owner (or borrower) still has possession of the property and sells the property for less than what is owed to the bank or mortgage holder.

A mortgage must always be satisfied (paid off) in full in order for a property to sell. In order for that, one or a combination of three things must happen:

  1. The most popular and most talked about is the bank/mortgage holder writes off the loss and “forgives” the borrower. In some instances, it can still negatively impact your credit – but not as bad as a foreclosure.
  2. The borrower brings cash to the closing table to pay for the difference. This rarely happens because if the homeowner had the money to pay the difference, they would likely not need a short sale in the first place. Short sales are generally reserved for when foreclosure seems inevitable and the borrower has no way to pay back the note.
  3. The owner borrows the money to pay the difference. Many times the institution (so long as it is not a mega-national company) will loan the difference or a personal loan can be given from another bank.

Many sellers who are “upside down” in their real estate are trying to attempt this option. On the surface, it seems very easy. The truth is, there are a lot of hoops to jump through and you may not qualify for it. I was working a short sale and had the buyers about two weeks ago. The president of a large local bank told me, “If we did it for these guys, then we would have to do it for everyone. That would say it’s okay to default on a loan you promised to repay and that’s just not right. We’ll foreclose on it before we’ll even consider short selling it.” On the other hand, some banks would far rather a short sale than to have to go through the expensive process of foreclosing. We’ve closed short sales and they do happen.

There are so many things that come into play on these that I will have to save them for a later time. Keep an eye out for more on this topic and I will try to link them together to make them easily found. If you have any questions, call us or email! We’re in business for you and are happy to help any way we can.

Related articles:

Perils and Advice of buying Short Sale Real Estate in Murphy, North Carolina

John Poltrock, Certified Residential Specialist – The Poltrock Team at REMAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Toll Free 1-866-Murphy-NC or 1-866-687-7496

The POWER of using a local bank in Murphy, North Carolina

Posted by I Love Murphy on

In our real estate market, we have so many clients coming to purchase a second home or land they can enjoy now and in the future. Dreams of retirement, log cabins, mountain views, and warm fireplaces can quickly be dismantled by the wrong bank. Why? A variety of reasons come in to play.

Out of town banks are usually the ones to avoid – but not because they’re bad banks. We run into this commonly because many of our clients come from out of town and want to use the same one they have all their accounts with. This makes sense for convenience and sometimes even for the interest rate. Where it runs into problems is they are unfamiliar with our local market and require double appraisals, forms, and other things that are simply not commonplace in our area.

Who to use? We have many local opportunities that will prevent many of the kinks that can occur before they happen. Each buyer and property is totally unique, so different banks and lenders will fit certain instances better. Some of the good choices include:

Most every one of these banks can meet or beat any bank rate out there, so why go through the hassle of an out of towner? Want a personal testimony on why not to use a local bank? We can certainly give you a long list of clients who started with an out of town bank only to be turned down and have to switch at the last moment.

You Can also visit our Gotta Guy List, which is local Recommended Contractors and more in Murphy, NC

Call The Poltrock Team – REMAX of Murphy, North Carolina – The POLTROCK TEAM – Homes and Land in the Mountains – (866) 687-7496 – JohnPoltrock@gmail.com – www.MyMurphy.com