An informational source for people who are relocating, with a particular focus on moving to the Carlsbad area of North County San Diego (and nearby coastal communities), with advice, guidance and true stories to help you on your way and make it a great journey, from a REALTOR� with plenty of personal (4 major moves, most recently from Boston to Carlsbad, California) and professional relocation experience. Are you running into problems selling your home? Need to find a new one quickly? Never moved before and haven't a clue? You'll find some great tips on how to solve your relocation issues here. Or ask me a question any time and I'll share some solutions or tell you where to get more information.
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I've written about short sales in the past, since they are far more common now than in the past due to the changes in the housing market. My concern is that you might decide to not look at a home once you find out it is a short sale, and you COULD be missing out on a great deal. The same is true of a foreclosure. The primary difference is that in a foreclosure the seller is the bank
But there are some things to be aware of:
A short sale will be subject to lender approval, which can take time - if the lender does not approve the deal, even though the seller is agreeable, the transaction may fall apart. In a foreclosure the offer will be reviewed directly by the bank (the seller)
You may need to acquire the house "as is" - while you should still do a home inspection, you may not be able to negotiate any repairs. This may be more likely in the case of a foreclosure.
There may be competiton, since the home will likely be priced favorably in order to sell
There may be other specialized requirements depending on the lender. A bank, with a foreclosure, may have an extensive addendum for you to review and sign, in addition to the standard paperwork.
The lender, especially in a foreclosure, may have a stipulation that if the buyer does not close by the agreed-upon date, that there may be a daily late charge for every day beyond the original date - so be cautious is setting your closing date and be sure you can meet it - perhaps making it longer than you really think necessary.
While motivation is high for both foreclosures and short sales, do not assume that these are the deal of the century. The bank, in both cases, is still going to want a reasonable market price, so you may not save as much as you think you would. This, of course, will depend on the particular lender, your market, the loan, and other factors.
In this market, it is likely you will come across either of these hardship situations. Make sure you have all the information you need to make an informed decision. And have your agent check with the listing agent, who will know what the bank requires. If I can provide any assistance, please ask.
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