You've searched your ideal neighborhoods, and you find a property which appears to be priced significantly lower that the rest. It might just be your lucky day if you are willing to work through the often long and tedious process of buying a short sale.
A short sale is a real estate transaction where the seller's lender is accepting a discounted payoff to release an existing mortgage. It is typically done to prevent a foreclosure, but it is designed as the most economical way for the bank to recover the amount owed on the property, not to help the property owner.
Here's some helpful tips for buying a short sale property:
1. Research public records. Find out whether a foreclosure notice has been filed, and how much is owed to the lender, so you know what to offer.
2. Remember that the lender will not pay for items such as home warranties or termite inspections. Obtain and pay for a home inspection and make your offer contingent upon its approval.
3. Make your offer contingent upon the lender's acceptance and give a time frame for response.
4. A property listed with short sale terms does not mean the lender will accept your offer. A lender will only agree to a short sale if the seller has no equity in the home and cannot repay the difference between your sale price and their loan.
5. Once the seller has accepted your offer, send it to the lender for approval. Offer proof that you are pre-approved for a loan, along with a list of comparable sales supporting your offer price.
If you have any questions or need help with a short sale...please feel free to call me @ 704-975-7848
Comments(0)