What to know about buying a short sale

On Behalf of | Jan 8, 2023 | Residential Real Estate

A short sale occurs when a homeowner needs to sell their home for less than what they currently owe on it. They usually arise if a homeowner is dealing with financial issues and they need to eliminate the monthly payment. 

If you want to purchase a short-sale home, you must go through several steps that are not part of the typical homebuying process. It is worth noting that buying a short-sale property can be a smart investment if you research the property first. 

Short sales are not usually fast

You may think that a short sale is a faster way to buy a home; however, this is not true. With traditional home sales, buyers make offers and work with the home’s seller. With a short sale, the same thing happens, but the lender must approve the sale. 

Many lenders do not get in a rush when it comes to reviewing the offer. They aim to determine if the short sale offer will provide more payment on the mortgage balance than foreclosure. 

Short-sale properties are sold as-is

As a buyer, it is required for you to do your due diligence if you are considering buying a short-sale property. Even if you invest in an inspection, the information provided is for your information, not for negotiation purposes. 

Is a short-sale property right for you?

Short-sale properties can be found for bargain prices. While this is true, you still have to consider if you want to get into this. Knowing your legal rights and options when considering a short sale will help you get the best outcome for purchasing a home. You can work with legal professionals to know more about this process.