is there a real estate guru out there? what is? short sale subject to 3rd party approval, no condo association?
i am interested in purchasing a condo.
the listing reads: short sale subject to 3rd party approval, no condo association.
what does this means?
is this bad?
any tips?
what about : no condo association. is that bad?
It means the lender has not agreed to the sale price, so if you place an offer and the seller accepts, there is no agreement until the lender agrees; also remember the sellers pmi insurance must also agree to the deal
Then you have an issue that it maybe hard to find a lender to loan on the condo, it maybe impossible or the lender may require at least 25% down
It means the bank where the existing mortgage is pending approval for the owner to short sell their property to get out of debt.
Get yourself a great buyer’s agent if you are interested in the purchase. A great buyer’s agent can help with navigation through the process on a short sell.
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It means the lender has not agreed to the sale price, so if you place an offer and the seller accepts, there is no agreement until the lender agrees; also remember the sellers pmi insurance must also agree to the deal
Then you have an issue that it maybe hard to find a lender to loan on the condo, it maybe impossible or the lender may require at least 25% down
References :
The current owner can not sell the property for enough to pay off the current mortgage. They also have no cash to help pay off the shortfall. They are needing the current mortgage lender to agree to accept less that a full payoff of the loan and still provide the buyer (you) with a clear title.
This is very complicated and very frustrating. You will hate this process and your loan lock may expire and no one has any money to repair anything and no one will care if you buy or don’t buy.
But it can be a way to buy a property very cheap-maybe-be careful- and get a very good buyer’s agent. The seller will pay their commission.
The phrase no condo association? I don’t know what they mean there. I would have my agent ask them what they mean and ponder what that could mean in the future to me.
You really want a condo association. Maybe they mean the shortsale does not involve any condo dues.
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A condo without an association isn’t good. They are suppose to oversee the buildings and land maintenance. Who do you think pays for that? Homeowners. Subject to 3rd party approval means a lender, could have a second mortgage on it. In this case, I’d keep searching.
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