Understanding the Short Sale Process

Most of today’s home buyers will have come across properties that are being offered on short sale. Some may even consider buying a short sale home when they see how much they will be able to save if they do decide to purchase one. But as with any major purchase, buyers need to understand first what short sale is so that they would know what to expect if they decide to go through with buying a home that is being offered on short sale. A short sale is a real estate transaction wherein the lender (usually a bank) agrees to accept a price that is less than the amount owed on the mortgage. When mortgage payments haven’t been paid for 90 days or more, there is a possibility of foreclosure. Short sale is an alternative to foreclosure. Even though the lender stands the chance of losing money, it is still a better option than having the property foreclosed.

As a homebuyer, you will fully benefit from purchasing if you keep in mind a few important things. The bank (lender) will have the final say in what would be the most acceptable offer for the property. You, as the buyer, would have to come up with an offer which you think the bank is most likely to approve. You have to be very patient because short sale transactions usually take longer compared to other real estate transactions. You also have to be very diligent throughout the whole process. Inspect the house carefully. If possible have a certified home inspector look into the property. Short sale homes are sold on an ‘as-is’ basis. The expenses that will be incurred for repairs should be a major consideration when you decide on the final amount of your offer. If you have found a property that you really want to buy and it so happens that it is being offered on short sale, you can hire the services of a real estate lawyer that specializes in short sales. Your lawyer will be able to explain to you what to expect in a short sale transaction and can even guide you in coming up with what could be the most acceptable offer that the bank is most likely to approve.

 

*This is a sponsored post however, all the points and views are my own.

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