Foreclosure Resources

Buying Short Sale Properties in Santa Barbara

If you are currently in the market for a Santa Barbara home for sale, chances are you have heard about available short sales.  You may not be too familiar with short sales in Santa Barbara, so consider this your personal service for all things related to Santa Barbara short sales.  There are some things you may want to know about short sales before checking into one as your home buying option.  You may have some of the following questions:

1.  What is a Santa Barbara short sale?

  • A short sale is a property that is heading toward foreclosure, but the bank does not own it yet. 

2.  Why would I want to make an offer on a Santa Barbara short sale property?

• Typically you are getting a home at a significant discount.  You may end up getting a home with more space or features that you wouldn’t otherwise be able to afford.

3. Why would the current homeowner want to sell their Santa Barbara home as a short sale? 

• The current owners have to sell the property for less than what is owed on it because they can no longer make their payment.  They do lose all their equity; however, having a short sale on their credit record is much better than a foreclosure.   They can apply for a new home loan in less time after a short sale than a foreclosure.

4.  How long does closing on a Santa Barbara short sale take?

• If you are making an offer on a short sale property, don’t expect to close as quickly as you would on a regular listing.  Short sales can take up to several months longer to close because the offer must have the bank’s approval since they are typically losing money on the sale.

5. What is one of the biggest disadvantages to making an offer on a Santa Barbara short sale?

  • One of the most frustrating things you will encounter with a short sale is the time it takes.  If you have been pre-approved for a loan, your rate is usually locked in for 45 days.  If you have made an offer on the property, the banks are in no rush to get you an answer immediately, so your locked in rate may expire before you even get a return answer.

6.  What should I avoid doing during the Santa Barbara short sale process?

• You should avoid thinking you are going to automatically get this house at a steal.  You don’t want to go in with a low-ball offer and expect the bank to take you seriously.  The banks have shareholders and investors to answer to.

7. What is the most important decision I can make when considering a short sale property in Santa Barbara?

• The best thing for you, the home buyer, to do is to seek help from experienced short sale real estate agents, such as me, Stephanie Young and Marie Sue Parsons.  Seeking the help of an agent with Santa Barbara short sale knowledge can be the most valuable asset you have during the home buying process.

If you are looking for a Santa Barbara home for sale and are considering a short sale option, please contact us, Stephanie Young and Marie Sue Parsons.  We are available to walk you through the short sale process and answer any additional questions you have about short sales.  Give us a click or call today.

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