A short sale is when the seller sells his/her home with the mortgage company agreeing to accept less money to payoff the mortgage. This is done when the seller is experiencing economic hardship and the value of their home is worth less than their current mortgage. Most home buyer's, and surprisingly real estate agents, do not understand the concept and process of buying/selling a home as a short sale. Some tips
1. A short sale does not mean the sale will be quick, it can actually take several months for third party approval and even longer if there is a second lien holder.
2. You cannot receive seller' s assist for settlement cost. The seller cannot pay his mortgage and is in need of a bailout. He does not, nor the bank, ghave funds to give you for settlement cost.
3. The seller cannot make any repairs, home is sold "as is".
4. A potential buyer may need to pay judgements and fees.
5. The potential buyer may need to turn on the utilities in their name before taking ownership.
6. Is buying a short sale worth it? Yes, it can work out for the potential buyer as far as purchasing prime real estate for half or less in cost.