1070 Cedargate Drive St Louis MO 63122 is a potential SHORT SALE
2 bedroom 2 bath condo listed at $65000
1070 Cedargate Drive is a spacious 2 bedroom 2 bath condo. It is on the 2nd floor. The unit has a covered balcony, living room, dining room and eat-in kitchen. There is a large laundry room (11×5) in the unit as well as a storage unit on the property. There is a 1 car assigned parking space. The subdivision complex has a swimming pool and picnic area. This unit has some deferred maintenance and will need repairs. It is located in the city of Kirkwood and does require an occupancy permit. The location is in close proximity to West County Shopping Center and major highway arteries.
Schools
1070 Cedargate is in the Kirkwood School District. The elementary school is Westchester Elementary which is about 2.5 blocks away. The North Kirkwood Middle School is also about 2 blocks away. Kirkwood Senior High School is located at 801 W Essex. For a list of schools in the Kirkwood MO area click here.
Short Sale
So what does it mean to you when you see these words in a listing description: Property is a possible short sale and subject to lien-holder approval. Home is being sold in AS IS condition. Owner will not make repairs, perform any inspections or provide a home warranty.
A short sale occurs when an upside-down situation exists between a seller and his lender/mortgagor. It basically means the seller paid and owes the bank more than the retail value of the property (more than what it will sell for). If the lender is willing to work with the seller and accept less than is owed on the property it is called a short sale. By accepting a discounted amount, the bank avoids a foreclosure and the costs that go with it.
In the case of 1070 Cedargate Drive, the seller paid $125000 in August of 2007 which was the very peak of the market. He had a low downpayment so the amount of principle remaining on his loan is over $120000. The 2 most recent like-kind sales in the condominium complex were:
- 1040 Pinegate which sold for $72000 in November of 2013
- 1041 Woodgate which sold for $85000 in March of 2013
Today most short sales can be closed within 45-90 days. Banks are more willing to accept short sales because of the time and money it saves them. Once a buyer presents an offer and the seller has accepted it, the contract is sent to the lien holder. This is where the time accumulation can start mounting. All offers must be on a Special Sale Contract. When making the offer, the buyer allows 7 to 10 days for the seller to accept the offer. The buyer adds a clause to the contract stating that acceptance is based upon lien-holder approval. If you are making an offer significantly lower than the asking price, attach a contractors itemized bid for repairs.
Generally speaking the lien holder and/or short sale specialist will require the following terms:
- EM to be paid within 5 days of Lien-holder acceptance – $500 EM required, $1000 always better
- It is best to put the closing date 60 to 90 days out from contract acceptance. It probably won’t take this long but eliminates the need for amendments (which are more time consuming with a lien holder involved).
- In most cases the seller pays the title fees. With 1020 Cedargate the seller pays the title fees and the title company must be Sheri Lewis at Investors Title is the processor for both sides.
- Page 5 – Paragraph 19: Property sold “as is”. Seller to make no repairs or do inspections.
- For 1070 Cedargate there is a $3600 fee at closing to SLSS,LLC due at closing.
- Page 6 – – give seller 7- 10 days for signature
- All offers to be accompanied with Proof of Funds for Cash offers or Pre-approval for Conventional loan. NO OTHER loan is possible. Cannot work with FHA or VA.
- With a loan, Buyer can ask up to 3% closing costs and prepaids, but the bank will still look at their net when making final Acceptance
- Call prior to writing an offer – – – just try to keep from having to rewrite. If we have a correct offer in the beginning, Acceptance is easier.
- We need Proof of Funds or Preapproval. If it is an LLC Buying, we need LLC certifications PLUS, one member MUST sign on behalf of LLC. LLC name, by _______________ member.
In the end, buying a short sale can be a great bargain for the buyer. It just requires a little more patience than a regular sale. For more information, contact Barbara Heise by phone or text 314-503-4856
