"SHORT SALE" PROPERTIES for sale on Kauai
Important info and Details
A short sale is when the Seller is attempting to sell the property for less than what is currently owed to the bank (lenders). For these properties, offers are submitted to the lenders for approvals as they have the final say in what they will accept or if they will accept a partial payoff on the balance owed (to satisfy the mortgage).
Though these are a great opportunity to purchase a property for less, there are some requirements, timeframes, and concessions often associated with these transactions. Items that the seller usually pays for are often at the buyers expense, like termite inspections, cleanings, and staking of the property (for homes) or condo documents. Also, the processing time for these offers can take anywhere from 6 weeks to 6 months, though you as the buyer could cancel any time prior to full approvals by the lenders/bank.
Also of note, the Sellers may continue to accept offers and submit them to the bank until the bank has approved one. This means if you love the property, you should come in with your highest and best offer to stay competitive.
If you decide to write an offer on this type of listing, the following will be REQUIRED for your offer to be considered.
· Pre-qualification letter: I would be happy give you the names and contact information for multiple loan sources and lenders. Short Sale offers will not be considered and cannot be submitted without the pre-qualification letter.
· Verification of Cash Funds: copy of bank statements or letter from your financial institution on letterhead will be required to submit a cash offer and often required to verify your down payment if financing your purchase
· Earnest Money, short sales will accept a personal check in most cases, the check will need to be made out to the Escrow company and a copy included with your offer to purchase, generally 10% or $5000.00, whichever is greater, is recommended
If you have additional questions regarding Short Sales or would like to see available listings, please contact me directly.
Jamie Friedman (RA)
Prudential All Star Realty
direct (808) 634-2011
fax (808) 356-1342
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