A short sale is a property that is worth less than what the seller owes to the bank. In order to buy a short sale, the bank must approve the sale at that lesser amount. Here's a simple guide to see if you are a good candidate for buying a short sale home or condo. If you answer Yes to the following questions, then buying a short sale may be a good option for you.
1) Can I wait for a fairly long time before getting a response from the seller's bank to my offer?
2) Do I have a place to live without needing a specific possession date if the seller's bank takes months to respond?
3) Can I remain objective and not get stressed out if the bank refuses the short sale terms?
4) Am I willing to be flexible on my price if the bank asks for more money?
5) Do I have a good idea that I am paying a fair price for the home in case the bank accepts my offer?
6) Have I done my research to know that there aren't any hidden costs, such as special assessments, that I may have to pay?
7) Do I know how much the seller owes to the bank, and how short the seller actually is?
8) If I am an investor do I know if the home or condo I am trying to buy can be rented out after purchasing?
9) If the home I am trying to buy needs work, do I know what my expenses will be to fix it up?
10) Am I prepared to pay for a home inspection and give earnest money before I know if the bank will approve the short sale?
11) Am I confident that I can get a loan to purchase a short sale?
12) Will the home fit my needs and will I be happy with the purchase if the bank accepts my offer?
Considering that you will probably be inconvenienced when trying to purchase a short sale you should be certain that the price you are paying is fair for the current market conditions. It is possible that the bank will ask for more money than you think the property is worth, and you should be prepared to walk away if that happens...even if you have already waited months for that response.
Kathy Barkulis
Re/Max Suburban
Arlington Hts., IL
847-385-3015
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