How to Buy Short Sales Leave a Comment How to Buy Short Sales Learning how to buy short sales may be one of the b est investments you make. While anyone can purchase a short sale successfully, it is the inves tor who is likely to turn the largest profit from d oing so. One of the biggest markets right now is the Myrtle Beach short sale market. The property options are numerous and the deals are outstanding. Still, one of the most popular questions real estate agents in Myrtle Beach have is how to buy short sales. Understanding the Transaction from the Bank’s Point of View In order to do well in short sale transactions, inv estors need to understand the bank’s circumstances. If the current property owner is unable to make paymen ts towards his or her mortgage, the bank is in a difficult position. It can foreclose on the propert y or it can accept a short sale. Foreclosure is an expensive, long process that often means selling th e property at a reduced rate anyway, and it often takes far longer than the bank would like. On the o ther hand, if there is interest in the property, th e lender may find that a short sale is the best route to go. Consider what the lender would have to do if it too k the foreclosure route: File the legal process. The property may be in poor condition which means t he lender may need to make repairs on it. They may have to pay taxes and insurance on the pro perty until it is sold. The lender may have to hire a real estate agent to sell the property. They still take a hit and sell for less than the lo an on the property. On the other hand, they can simply accept less than what is owed and sell it through a short sale. The market in the area is one of the most important fac tors. If the lender took the foreclosure route, it would own the property until a seller came along. I n some markets, that can take months. On the other hand, if they sold through a short sale, which mean s there already is an interested buyer. The Short Sale Process The short sale process is a complex one. If you are considering buying real estate in Myrtle Beach, sh ort sale real estate agents will help you through the p rocess. The current owner and the lender must accep t the offer. The lender must determine if this is the right choice for their particular needs and that p rocess can take several weeks. The bank is likely to have an appraisal of the property conducted to ensure it is not losing too much on the deal. In many circumstances, a Myrtle Beach short sale ta kes a few weeks to go through. Once the bank accepts the offer, the property is sold in the trad itional manner. The new owner is able to enjoy thei r property, flip it or even rent it out as they would any other property.