Cabo San Lucas
Whether you're in the market for a new home, vacation home or an investment property, or considering selling your existing home, a short sale is something you might consider. Short sales are becoming increasingly common in areas where home values have dropped substantially, and Cabo San Lucas is no exception. Short sales can benefit those sellers facing the prospect of a foreclosure as well as buyers looking for a deal on their next place to live. However, before buying a short sale property, it is essential to understand how they work.
At Coldwell Banker Riveras we assist homeowners and buyers in getting their short sales closed. We invite you to click on the 'Contact Us' or send us an email to info@cbriveras.com and we will be happy to assist you. See currently available short sales in Cabo San Lucas and Baja California Sur.
What is a short sale?
A short sale is a sale of real estate in which the selling price falls short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is best. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.
In a real estate short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem.
In Cabo, short sale real estate refers even more to a distressed seller than the literal definition outlined above. With limited mortgage financing in Mexico a short sale homeis often used when sellers have pressure from their funding source which they need to remedy in the short term.
Short sale condos and short sale homes are different from foreclosures in that a foreclosure is forced by a lender. Short sales are entirely voluntary transactions for both parties. The borrower may decide to remain in the property and attempt a refinance or modification of their mortgage loan, or may refuse to cooperate with the lender's demand for financial documentation or a cash contribution, and thereby ensure foreclosure. Similarly, lenders can refuse to evaluate or approve a short sale offer, generally due to disapproval of either the buyer's offer amount or high closing costs, which reduces the lender's net proceeds. All short sale contracts should include a contingency clause specifying that the contract is contingent upon approval of the seller's lender(s).
At Coldwell Banker Riveras we assist homeowners and buyers in getting their real estate short sales closed. We invite you to click on the 'Contact Us' or send us an email to info@cbriveras.com and we will be happy to assist you. See currently available short sales in Cabo San Lucas and Baja California Sur.
Source on short sale definition: Wikipedia (www.wikipedia.com). More information on Short Sale also on AOL. http://realestate.aol.com/
