Real estates have different laws and terminologies. One of which is a quick sale. This is the most commonly used term in this field of business. Better understanding of what a quick sale is quite important. As a businessman, you can determine how to make a huge amount of profit if you have enough knowledge about the more common real estate terms. For debtors on the other hand, there are some benefits that they could get from knowing this information as well.
There are quite a number of things that you need to know before you get yourself fully engaged in this kind of business. Some of these things would include the benefits both to debtors and businessmen, function of a short sale, the whole process and its effects.
To start with, a quick sale is a form of a business deal which involves buying a property for a price lower than its normal value. This normally happens when the mortgage loan could not be paid by the borrower, or home owner. After a couple of months that the debtor failed to pay for the loan, the lender decides to sell the property for a lower price, rather than putting too much pressure on the borrower.
The whole quick sale process starts when both parties agree to sell the unpaid property for an amount relatively lower than the outstanding balance. Since this involves a huge amount, real estate lawyers for both parties should be present. By doing this process, it guarantees both the borrower and lender that the whole process will be taken care off legally. This is an added insurance that no one gets ripped off and that these two parties will equally benefit from it.
The debtor should sign a consent form saying that he/she agrees to the short sale agreement. The bank will also sign another consent form if the institution agreed to the price offered. The bank has the power to object to the amount offered. There are instances that the buyer has to wait for the bank’s decision – it may range from two days up to five months.
Once everything is settled, including the legal papers, the property will not undergo foreclosure, thus, less bank fees and other expenses will be spared. Borrowers on the other hand will benefit since having a poor credit score can be avoided.
With regard to business, most people take the advantage of a quick sale to earn huge profits. Say for instance, there is a property with an outstanding balance of $300,000. You and the lender can agree to pay the remaining balance at $250,000. After which, the businessman is not obliged to pay for the remaining $50,000.
Since you have agreed to pay for a lump sum, the bank agrees that the debt has already been paid. After which, they grab this great opportunity to sell the property for a higher price.
Understanding the process will help in creating profits. You just have to understand the process better and seek the help of experts for your better appreciation of the whole picture.