Want to Buy a Real Estate Short Sale?

Want to Buy a Real Estate Short Sale?

When lenders agree to do a Short Sale in Real Estate, it means the lender is accepting less than the total amount due on a mortgage or note.

This can be great for a buyer looking for a deal but comes with its share of problems as well.

1. First of all, not all lenders agree to accept Short Sales and not all buyers will qualify. (Your pre-approval letter will go a long way here.)
2. Just because it's a short sale does not necessarily mean it's a good deal. You still have to do your "due diligence." Check comparable sales in your market. Don't' go by list prices. You need to see what similar homes have sold for in the neighborhood.
3. It is important in any real estate transaction to have proper representation. Remember, the listing agent represents the seller. Real estate commissions are generally paid by the seller so why not have a professional on your side - especially on a Short Sale.
4. Make sure you make your offer contingent on the Short Sale being approved by the lender within a reasonable time frame. --You don't want to wait around for weeks to find out that the lender won't approve your offer --but you don't want your offer to "die on the table" before the lender has had a chance to read it either.
5. There is a good chance there will be more than 1 offer presented to the lender so make sure you do your homework and send a qualified offer. Low ball offers may sound great, but a well thought out offer will have a better chance of being accepted.
6. ALWAYS perform a professional home inspection. Even though the Short Sale lender will probably require an "as is" sale - you still need to know what repairs will be required and how much more it will cost to maintain the home. It may save you $1000's in the long run.

Just a note: I am a REALTOR®, not an attorney, cpa or financial specialist. Writing or accepting an offer on a home is a potentially binding contract and buying a short sale takes extra care and diligence. When in doubt ALWAYS consult the appropriate professional.