Recycling Homes – The Short Sale
If you have been thinking about buying a home you will probably have noticed quite a few short sales popping up on the MLS listings. A short sale can give you a great real estate bargain. However before making an offer on one you should be aware of some things.
Short sales can take a very long time and can cause you many headaches. I recently bought a short sale house and it took almost a whole year for the deal to go through. However it was a bargain price! If you have the time to hold out then a short sale may be for you.
A short sale happens when a home owner sells their home for less that the mortgage amount that they owe. It usually happens before the home goes into foreclosure and means the owner can save their credit rating.
Find a realtor that has experience with short sales. As they have become much more common more and more realtors are dealing with them. An attorney may need to be involved in the sale and a title agent may have to do research on the property. The more liens that a home has the more complicated it becomes. That is why an experienced realtor is so valuable.
If the short sale goes through then the original mortgage owner will lose money. They will be aiming to keep these losses at a minimum. Therefore they may reject an unusually low offer. Work with your realtor to determine the best price to offer. If your offer is accepted by the seller then it will be passed on to their lender for approval. As previously mentioned this can be a lengthy process.
The lender will look at your financial position; therefore you should be preapproved for a mortgage and have the closing cost funds available. If you have a home to sell the lender may reject you offer as this can delay things at their end. Be aware that most short sales are sold in an as is condition.
Article provided by Mortgage Calculator
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