With a large number of foreclosures available for homebuyers and investors to choose from, another mode of buying property is getting popular in the real estate market which is known as foreclosure short sales. By buying a property before it gets foreclosed by a bank or a lender, there are high chances of getting a deal at additionally reduced prices which makes opting for a short sale foreclosure an ideal investment. But before you go ahead and purchase a property it is important to have a good understanding of foreclosures short sales in order to make a successful purchase.
Understanding a short sale foreclosure
Foreclosure short sales take place when a home owner is unable to pay his mortgage and his property faces an impending foreclosure.
At this point if the owner agrees to sell the property at an amount lower than the pending mortgage the lender puts up the property on sale through a process known as foreclosure short sales.
Lenders agree to sell property at pre foreclosure short sales in order to avoid the expenses involved in the normal foreclosure process.
One can buy a property at a pre foreclosure short sale at a much lower price which can go as low as half of the current market rate.
Buying a property through a short sale foreclosure
Contact lenders By being in touch with banks and other mortgage companies you can have the latest information on properties facing pre foreclosure short sales.
Search online listings There are large number of real estate services available online from which you can source comprehensive and latest information on foreclosures short sale.
Ownership Once you have narrowed down on a list of prospective foreclosures short sales options you should check the ownership of the property with the lender.
Inspect property Before making an offer through foreclosures short sale it is very vital that you make a thorough inspection of the property.
Submit your offer Before you talk with the lender, get a pre approved loan so that you can validate your offer on the property available through foreclosures short sale.
Consult an agent It is a good idea to get a real estate agents help in the legal and financial aspects of the pre foreclosure short sale.
Melanie Hogeveen is an expert writer in the field of real estate especially foreclosures and has been doing research on foreclosures for the past several years. She is renowned for her advices and tips on buying foreclosures. For more details please visitForeclosure Short Sales.