Buying a short sale, The ins and outs

A lot of individuals today have realized the investing in short sale properties can be lucrative. These homes are usually more affordable, in good condition and sellers who are eager to negotiate prices. It is thus not surprising why the market is currently filled with buyers of short sale properties. If you are one of these buyers, you should understand your role in the entire process.

Contrary to what most buyers think, you should also be involved in the preparation of the short sale package. If immediately you notice problems with the seller and short sale Realtor such as delays in providing documents and non-availability to answer queries, then you should consider another short sale property to buy since you may be seeing the first of many problems.

You can expect the lender to look into your financial credibility and see if you are indeed capable of meeting your end of the contract. It might help if your offer letter comes with a pre-approved mortgage letter or proof of funds. This way, both the lender and seller can see how serious you are about buying the property.

Getting the lender’s nod should not mean all your concerns are over. You actually still have a long way to go. For example, the lender might suddenly change their minds about paying certain fees included in the closing cost. The seller could also fall behind on their utility payments or no longer keep the property clean. Although you might think these are trivial matters, they could still cost you in the long run.

Of course, the worse that could happen is for the seller to change their mind about the short sale. most of the time this happens when a seller files for bankruptcy or decides to try a loan modification instead. This situation could leave you dealing with financing and inspection expenses as well as the reality you need to do everything all over again.

Being involved in a short sale transaction is not for the faint of heart. In order to manage the many things that could go wrong, you need to do your homework or hire a short sale Realtor to help you out.