What Can Go Wrong With Buying A Short Sale?

Anytime a buyer has a binding contract on a short sale they run the risk of the seller’s lender not approving the short sale.  Having negotiated hundreds of short sales, we’ve compiled a few other situations that all buyers and potential buyers need to be aware of since they could affect the outcome. Closing Costs:  Lenders follow very stringent guidelines for how much they will pay in closing costs.  You see, the lender pays the closings costs, not the seller.  The seller does not have money to pay closing costs.  The lender is already facing a loss in accepting a payoff for less than is owed, so they want to minimize their other costs as much as possible. The buyer’s lender should be familiar with the rules the shorting lenders follow for determining what they will pay in closing costs and should take this into account when doing a pre-qualification or pre-approval .  For example, if the shorted loan is ...

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Should I Refinance My Mortgage?

These past couple of years many clients have asked about whether or not they should refinance their mortgage.    Along with people who have never refinanced, those that did even 18 months ago may be licking their chops to do the tango for another refinance in 2012.  For the week that ended December 23rd, the 30-year mortgage rate fell to 4.05% which was the lowest in 60 years according to HSH Associates which is a mortgage data firm.    The rates have gotten better in the jumbo market for those with a mortgage above $417,000 as well, but if you are below that number here are some considerations about whether a refinance is right for you. 1.) How long will you live in the home? –   One of the first questions you need to assess is how long you think you will stay at your current residence.  Or, if you leave the residence will you decide to use it as a rental ...

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