How does a short sale work in California?

A short sale is a pre-foreclosure residential real estate transaction where the owner of the mortgage loan, the lender or lien holder (hereinafter sometimes “Lender”), agrees to (i) allow the home owner to sell his or her property for less than — or “short” of — the outstanding amount owed on the mortgage loan, and …

How low will a bank go on a short sale?

A price that’s 5% to 10% below market value is typically a good number to put on the table. Venturing further down could be dangerous territory. One last factor to consider when finalizing a short sale offer is interest rates, especially if they are unusually low at the time the offer is submitted.

Can wholesalers do short sales?

you can wholesale a short sale. I do it all the time. It will have to be a double closing and the easiest way to do it is to buy it in a land trust and then sell the beneficial interest of the trust.

When does a short sale of a home occur?

A short sale is the sale of a home for less than the homeowner owes on the mortgage. A short sale typically occurs when the homeowner has fallen behind on the mortgage payments due to financial hardship.

How to know if a home is a short sale on redfin?

Redfin displays a yellow “Short Sale” flag on listings marked as short sales by the listing agent. If you don’t want to see these homes, select “Exclude short sales” in your search options. In certain cases we’re not able to flag a short sale listing, so you may not know a home you’re interested in is a short sale.

What’s the difference between short sales and foreclosure?

There’s less competition. Short sales take a while to finalize, and many buyers aren’t willing to wait. That means you’re less likely to get caught in a bidding war that can drive up the price, especially in a hot market. It can be less risky than buying a foreclosure.

Is there a refund for buying a short sale home?

If you’re thinking about buying a short sale home and want expert advice, reach out to a Redfin Agent who can talk to you about your options. *The buyer refund is calculated based on the final sale price of the home, and is subject to lender approval and a 2% minimum commission.