Short sales and mortgages have both existed for a long time. However, the dramatic increase during the recent Great Recession has let many homeowners and would be homeowners to become more familiar with the term and the process. A short sale allows a homeowner who cannot afford to continue paying a mortgage to avoid foreclosure by short selling the property. On the buying side, a buyer benefits from a potential discount on the purchase of the property.
Several steps are needed to buy a short sale home. After finding the right home, make sure you are dealing with an agent and other real estate professionals involved in the process who have experience with the process and how to successfully get an approval and proceed to closing. Regardless of the experience of the parties involved in the transaction, patience will be needed since short sales can take a long time to process and get approved. Next, proceed to find the proper financing. Third, have your real estate agent show you comparisons of prices for recently sold homes in the same area you are looking at. Do not assume that just because it is a short sale, it will be a bargain. Fourth, make sure there is language in the short sale contract which allows you to walk away from the sale if you find another home first and do not want to wait until the short sale is approved. Other reasons you will need an out are because the inspection shows costly repairs are needed. The lender will not always negotiate on the price due to property damages and repairs needed. Fifth, keep looking at other properties, since there are no guarantees your offer will be accepted. If you find another property, it might be time to walk away from the short sale. A traditional purchase is normally quicker to close and you will avoid the long process and uncertainty that can go along with a short sale.
Ray Garcia, Esq.
Board Certified in Real Law
by the Florida Bar
www.raygarcialaw.com
Law Office of Ray Garcia, P.A.
Latest posts by Law Office of Ray Garcia, P.A. (see all)
- Parenting Plans for Children With Special Needs - April 15, 2024
