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Philadelphia short sales are the sale of a home that occurs when the proceeds from the sale do not fully satisfy the existing loan or loans and the lender accepts a discounted payoff to fully satisfy the loan. All Philadelphia short sales must be approved the lien holder (lender) and almost always the seller will need to demonstrate hardship and inability to pay off the debt.
How are Philadelphia short sales different from a Philadelphia foreclosures?
The main difference between a Philadelphia short sales and Philadelphia foreclosures is that a short sale property is still owned by a distressed owner who is asking the lender to accept a reduced payoff for the existing loan and a foreclosure is typically owned by a bank who has already foreclosed on the property.
Do Philadelphia short sales always sell at greatly discounted prices?
Each bank has a formula that governs what price they will accept for Philadelphia Short Sales. Nearly all Philadelphia short sales formulas are based off of a recent appraisal performed at the bank’s request. On most occasions banks will not accept offers greater than 10% below the appraised value.
Why do Philadelphia short sales take so long?
Philadelphia short sales are subject to lien holder (usually lender) approval since the current owner is requesting a discounted payoff from the lien holder. The Philadelphia short sale lien holder will undergo a lengthy process that determines the fair market value of the property and whether or not the seller qualifies for a short sale. Remember that getting a lender to approve a Philadelphia short sale is a right not a privilege and many are sellers are not approved.
Who pays for the real estate commission and seller closing costs for Philadelphia short sales?
The existing lender who approves the Philadelphia short sale will typically pays all of the seller side closing costs, including real estate commissions and all existing liens or back taxes.
Understanding the process of buying Philadelphia Short Sales can seem daunting but is really pretty simple if you read and follow this advice from Philadelphia Real Estate expert Frank L. DeFazio. Learn more about Philadelphia Short Sales?