Tips for Purchasing a Short Sale Property
Buying a short sale property is a good investment i
n many cases. A short sale occurs when a property i
s
sold for less than what is owed on the current owne
r’s mortgage, and the lender accepts the payment as
payment in full. Before entering a short sale agree
ment, there are a few things you, as the property
buyer, needs to know.
How The Short Sale Process Works
Property sold as a short sale as not entered forecl
osure, but it is close to doing so. The bank must
approve the transaction, though because the lender
is likely to take a loss on the property by selling
it
like this. The process is longer and can test your
patience, but when it pays off, it helps you to sav
e
money.
The short sale offer is presented to the property o
wner who must accept it. Then, the offer is submitt
ed
to the lender for approval. Lenders can take weeks
to agree to the terms of the short sale. The contra
ct
is likely to say that the property is being sold as
is. The bank is unlikely to make any repairs to th
e
property to secure the sale of the home.
The Benefits and Disadvantages of Short Sales
Short sales are good deals for some people, but not
for others. Short sales may be priced well below t
he
current market values, but this is not always an op
tion to homebuyers who need to move into a home
soon. Keep in mind that not all banks will agree to
a short sale that is under the appraised value of
the
home, either. The biggest disadvantage to short sa
le is having to wait for acceptance of the offer an
d
learning, weeks later, the bank rejected it.
On the other hand, the property is likely to be in
better condition than many bank owned properties
since the property owner is likely still living the
re. Further, there are ways to minimize the risks y
ou face:
Hire an experienced short sale real estate agent in
the area you are buying in.
Look for properties in pre-foreclosure.
Those listed as short sale approved may provide a b
etter opportunity.
Be sure you are looking at several properties rathe
r than just one. Do not count on getting the
short sale property.
Do take into consideration the benefits of raising
your offer to secure the transaction.
For those interested in the short sale market in My
rtle Beach, the good news is that there are some
outstanding opportunities available. With the right
sales agent, you will be on your way to securing s
hort
sale property well below the price you would pay ot
herwise.
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