Buying a short sale can be a great way to get a property at a low price. However, it is a risk. While the sellers are trying to avoid going into foreclosure, their mortgage lender still has to agree to take less for the home than it is worth.
Short sales seem like they are simple, but they really aren’t. There is no way to know exactly how long the transaction will take, and there is no guarantee that your offer will be accepted.
What can you do to make a short sale purchase easier?
To make your short sale purchase easier, it’s a good idea to have all of your finances sorted out at the start. Know where you are getting financing for the purchase and have a pre-approval letter ready. Be ready to put down a large earnest money deposit if possible, because that will help your offer seem more serious and may sway the mortgage lender toward accepting it.
Another tip to help make this process easier is to plan for the extra time that it takes. The approval process takes much longer for a short sale because the seller has to approve your offer before sending it on to the lender for approval. In some cases, this will only take a few weeks. In others, it could take months.
Is it worth it to buy a short sale?
If you have taken a look at the home and had it inspected, then the short sale may seem like a great buy. Whether or not it is worth it for you to purchase this property comes down to the time you have available to wait for approval as well as the flexibility you have to make an adequate offer that the lender is likely to approve. Your attorney can help you through this process and protect your interests.