How to Buy Short Sales
Learning how to buy short sales may be one of the b
est investments you make. While anyone can
purchase a short sale successfully, it is the inves
tor who is likely to turn the largest profit from d
One of the biggest markets right now is the Myrtle
Beach short sale market. The property options are
numerous and the deals are outstanding. Still, one
of the most popular questions real estate agents in
Myrtle Beach have is how to buy short sales.
Understanding the Transaction from the Bank’s Point
In order to do well in short sale transactions, inv
estors need to understand the bank’s circumstances.
the current property owner is unable to make paymen
ts towards his or her mortgage, the bank is in a
difficult position. It can foreclose on the propert
y or it can accept a short sale. Foreclosure is an
expensive, long process that often means selling th
e property at a reduced rate anyway, and it often
takes far longer than the bank would like. On the o
ther hand, if there is interest in the property, th
lender may find that a short sale is the best route
Consider what the lender would have to do if it too
k the foreclosure route:
File the legal process.
The property may be in poor condition which means t
he lender may need to make repairs on it.
They may have to pay taxes and insurance on the pro
perty until it is sold.
The lender may have to hire a real estate agent to
sell the property.
They still take a hit and sell for less than the lo
an on the property.
On the other hand, they can simply accept less than
what is owed and sell it through a short sale. The
market in the area is one of the most important fac
tors. If the lender took the foreclosure route, it
would own the property until a seller came along. I
n some markets, that can take months. On the other
hand, if they sold through a short sale, which mean
s there already is an interested buyer.
The Short Sale Process
The short sale process is a complex one. If you are
considering buying real estate in Myrtle Beach, sh
sale real estate agents will help you through the p
rocess. The current owner and the lender must accep
the offer. The lender must determine if this is the
right choice for their particular needs and that p
can take several weeks. The bank is likely to have
an appraisal of the property conducted to ensure it
not losing too much on the deal.
In many circumstances, a Myrtle Beach short sale ta
kes a few weeks to go through. Once the bank
accepts the offer, the property is sold in the trad
itional manner. The new owner is able to enjoy thei
property, flip it or even rent it out as they would
any other property.