What The Beatles Should Know About St. George Short Sales
Well, what the Beatles should know about St. George short sales depends on which Beatles we’re talking about. Paul and Ringo are still alive, but they are rarely, if ever, seen in the Saint George, Utah area. And if Paul and Ringo should know about a St. George short sale, they’re either looking for a bargain or they simply love the beauty and climate of Washington County for the next of their many houses.
Whether those Beatles are interested in the real estate of Southern Utah is for me to know and for you to find out. (You wouldn’t want me to fall out of their graces for revealing secrets, would you?) Perhaps there are other Beatles who may wish to buy a house in St. George. Beatle-loving entomologists, who changed their name to Beatle or folks born with the surname Beatle are options to pursue a St. George short sale; and while ESPN broadcaster, Michelle Beadles, may love St. George, her name is spelled with a D.
Regardless of which Beatles or blokes are considering a St. George short sale, they should know the following six things.
When the owner of a property owes more than it’s worth, he or she may be in the less-than-ideal financial position to sell the property as a short sale. This means that he must get the lender’s permission to sell the house or land for less than what is owed. If the seller convinces the lender that he is in financial hardship and can’t continue to make the mortgage payments, the lender will often agree to a sale of the property for less than the balance of the mortgage. This is preferable to default and foreclosure for the lender, because, for example, $200,000 is better toward a debt of $235,000 than nothing, and foreclosures cost the lenders much more.
Selling your house as a short sale is softer on your credit score than a foreclosure is. You can sell the house, get some emotional relief, and move on to preparing to buy another home, with little hit on the Fico. Keep in mind that the longer the lender takes to approve the short sale and the offer from a buyer, the more months you’ll be late on your mortgage payments, which do affect the FICO score.
The seller doesn’t have to pay sales commission to the real estate agents; the lender pays them.
Because the lender has to approve both the seller’s application for a St. George short sale and also the offers by potential buyers, the sale can take months, usually about 120 days.
The number of prospective buyers of short sales is smaller than for typical real estate because of the waiting time. Some buyers simply don’t have months to wait in purchasing a house, so you have less competition when making offers on St. George short sales.
When making an offer on a short sale, be aware that because of the likely financial duress of the seller, he may not have been able to maintain the property very well, so it will likely need repairs and fix-ups.