Lexington, KY Short Sale Listings Explore Short Sale Homes in Lexington, KY!
Living in Bluegrass Country offers residents of Lexington, Kentucky the opportunity to experience the vivid history and culture of the “Horse Capital of the World,” as well as endless hiking trails and lush forests. Residents don’t need to be fans of equine culture to enjoy living in Kentucky, as the region is full of fascinating historical sites like the childhood home of President Lincoln’s wife, Mary Todd Lincoln.
Future homeowners who wish to consider alternative buying strategies for properties in Lexington, Kentucky may want to investigate available short sales. This buying option may represent significant savings and the opportunity to purchase a larger home or more extensive property. Before searching for short sale properties, future homeowners should research this type of buying to ensure the smoothest purchasing experience.
Understanding the Short Sale
When a homeowner cannot cover mortgage payments, the lending institution that offered the mortgage may attempt to recoup its investment through a real estate transaction commonly referred to as a “short sale.” The reason the transaction is referred to as a short sale is because there is the expectation that the sale price will be “short” of the amount needed to cover the full balance. By agreeing to a short sale transaction, the bank or lender, as well as the homeowner, can avoid the cost and hassle of starting foreclosure proceedings.
A short sale property may have many times the bids that a traditional property might have, so landing the successful bid often takes a little luck or persistence. It can’t hurt to speak with a lawyer and real estate agent who specialize in short sale real estate to increase the likelihood of getting a bid accepted as well as the eventual closing of the deal.
Process of a Short Sale
From the buyer’s point of view, the process of obtaining a short sale home is a little different than the standard process for purchasing a home. The biggest difference is the timeline for closing the deal. A short sale usually requires approval from additional entities, and as a consequence it may take a few months to reach a point of finality with the transaction.
After putting in a bid on a short sale home, a buyer will wait a few months for the bank to complete the following tasks:
- The bank provides a negotiator for the sale
- The bank appraises the property through a “broker price opinion”
- The bank reviews the purchase contract
- The bank requests all parties in the transaction sign a contract
- The bank creates an official approval letter for the transaction
Competitive Market for Short Sales
A short sale represents the opportunity to purchase a house at a greatly reduced price, so not unexpectedly there is significant competition for homes listed as short sales. Additionally, all parties involved with the sale must agree on the price, so finalizing a short sale home often takes longer and has a higher rate of failure. However, the extra time it may take to close a short sale is well worth the incredibly reduced price.
Considering a short sale home is definitely an option for home buyers who wish to land a house for a price that’s less than the market average for comparable homes. The process isn’t for the faint of heart; however, it’s essential that a future homeowner does his or her homework when looking at short sale properties in Lexington, Kentucky.