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Short Sale Guidelines to Buying

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By : Vicki Hat    99 or more times read
Getting into a short sale transaction may have a huge difference compared to buying a conventional home buying process. In short sale, you as the buyer do not call the shot; not even the seller. The lender of the seller is the one who controls the transaction. Hence, even if you think you have the most attractive offer; it is still up to the lender whether or not they will allow you to go through with the purchase.

A short sale means the sale is shorted; hence, the lender would accept a sale to settle the debts of the seller even for an amount less than their outstanding debts. So, it is not much of a wonder why lenders would take some time to approve short sale requests. They have tons of considerations to make. Sometimes, they may end up rejecting short sale offers if they find out that the sale would result into a greater loss than foreclosure.

If you are a buyer and you encounter a short sale, you need to understand a few things. For one short sale does not always mean a good deal. Making the wrong decisions may cause delays on your part. And you may also end up waiting for quite some time but still ends up getting your offers canceled.

However, if you are heavily enticed with the price tag that short sale property has, you must at least know the guidelines in buying short sale. Know these things and you will never be at loss with the transaction; not even waste your time.

The Guidelines

  1. You need to remain patient. Short sale transactions usually take weeks or even months before it gets accepted. So don't withdraw right away. If you think your offer was fairly made and you have researched the requirements of the lenders, then give the lenders some time to respond.

  2. Avoid making lowball offers. When you make purchase offer, make sure you make it attractive to the lenders. The last thing a lender would want to happen is to incur additional losses. Remember lenders would want to accept a transaction that could keep their losses to the minimum. Hence, it is important that your offer should be on average good for the lender to consider.

  3. Find an agent that can handle short sale transactions. If you get the wrong person to work with you, you may end up making the wrong offers. You may also lose hang your hat already when the offer is rejected. A short sale real estate agent can help educate you with the whole process and can guide you all the way.

  4. Research the property and learn to qualify them. Even if you have your heart set to look for short sales, you must not jump on the transaction right away, unless you have checked out the property fully. You may have to do a title search (if you are heavily interested) and you may also have to ask the right questions to determine the reasons for sale, the lenders involved, the condition of the property and anything that is vital to help you make the right decision in making the purchase.

  5. You need to show the lender that you are serious in making the purchase. Therefore, you must have some kind of proof to reflect your commitment in buying the property. Getting pre-approved or giving an earnest money would certainly create a huge impact.
If you want to invest on short sale properties, visit West Phoenix Valley Homes for Sale, Short Sale Homes in the West Valley and Foreclosed Homes for Sale in West Phoenix Valley, to find more quality properties at an affordable price.

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