Are You Thinking Of Buying A Short Sale?
A short sale refers to the sale price of the home being less than the mortgage. Short sales are effective options for all parties involved in the transaction – the seller, buyer and the lender – if they are successful. A few things you need to know before you make the decision to sell your home on a short sale:
1. Time is the biggest factor involved in a short sale. The process can take anywhere from 90 days to 6 months or more.
2. There is no guarantee that the seller´s lender will accept a buyer´s offer. They may reject it, counter it at a higher price, ask the seller to sign a small note for $5,000 or $10,000 or ask the seller to contribute some of the closing costs.
3. The closing date is unpredictable. If you need to close on a certain day, a short sale is not the right transaction for you.
1. Pre-foreclosure short sale properties are generally in better condition than foreclosure properties.
2. You get to purchase a property at or below market value with built in equity.
1. Short sales take longer to complete than regular real estate sales.
2. There is no guarantee the lender will accept your offer. They may counter with a higher price.
3. The closing date is unpredictable. If you need to close on a certain day, a short sale is not right for you.
4. The seller could declare bankruptcy at any time and the deal would be off.
5. Property is sold in an "as is" condition.