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Buying a Short Sale

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By : Sonia Smith    99 or more times read
You might want to consider a short sale home if you are in the market to buy a home. Furthermore, a short sale home is a good option if you are not in a hurry to sell your present home or do not have a timeframe to move to a new property. These days, purchasing a home have changed in a lot of ways. One of these changes is the abundance of homes sold short, lender owned homes and independent owners selling their homes as well.

A short sale is a process in which the home seller hopes to complete before losing the property to foreclosure. The process begins with the seller submitting the documents needed to the lender and waiting for offers for the property. Here are steps in buying a short sale home.

  1. First, you have to make a home offer and this will be written together with other documents where you acknowledge that the home will be sold as is. You will also learn that the seller will not make any repairs on the property.

  2. The offer you make will be faxed to the mortgage lender together with a copy of the HUD and proof of financing. Normally, mortgage companies have a lot of offers waiting for response, so this could take from a week to several months. Be prepared to wait and you should be patient with the entire process.

  3. When your offer is negotiated and accepted, the bank gives you a timeframe to close on the contract. If not closed on the date specified, the contract will be considered null and void. This is also the time to do a home inspection so you can determine the extent of damage and the state the home is in.

Keep in mind that the most important thing you should do when buying a short sale home is to hire a real estate agent who has full knowledge and experience about short sale homes. Since the process takes long, you may look for other homes to buy. This way, you will have several alternatives in case the bank or lender rejects your offer.

Bear in mind that unlike a traditional sale, a lower offer is not good because the bank could reject it immediately. The best thing for you to do is to make a reasonable offer of what you want to pay for the home. A knowledgeable agent could inform you right away if the home is priced unusually low or priced just right.

In the real estate market, it is unlikely that you will hear a real estate agent tell you that it is not a good idea to purchase a short sale home since they profit from a short sale. Everyone profits on a short sale except the sellers and the buyers. Nevertheless, if you are set to purchase a short sale home, make certain that you do your research and hire an experienced agent and be prepared for a longer wait.
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