Here are some tips for buying a short sale home. With many home owners being behind on their mortgages and mortgage companies being overwhelmed with the large number of foreclosures, short sales can offer an opportunity for both debtors and creditors to get out of a bad situation. For the buyer, a short sale can provide the opportunity to buy at bargain prices but there are some things that buyers should keep in mind.
Short Sales Are Complicated
As any sale must be approved by the mortgage holder, the process of negotiating a price in a short sale can be complicated. With many homes having more than one mortgage holder the process is even more complicated. Buyers looking at properties offered as a short sale should hire an experienced real estate agent who can handle the details and help to protect their interests.
Short Sales Can Be Slow
In addition to being complicated, short sale negotiations can be very slow. Not only do the additional forms and correspondence take time but the decision making process from a large company can be expected to take time as well. If a buyer needs to buy a home quickly, a short sale listing is probably not ideal.
Short Sale Fees May Be High
On many real estate deals, the seller will pay for some or all of the repair costs, administrative fees, and other expenses of closing a real estate deal. A mortgage company may not be willing to agree to any of this selling the home as is and making the buyer responsible for everything.
Short Sales Are Not Guaranteed
Even after all the work and time put into the purchase, the deal may fall apart at the last minute for many reasons. The seller may change their mind on the sale, the mortgage holder may decide not to accept the short sale, or a million other things could go wrong along the way.
Homes May Need Work
Homes being purchased through a short sale are being bought from individuals experiencing financial problems. This may mean that maintenance work on the home has been put off, major or minor repairs have not been completed or completed in an shoddy manner, or pest problems have gone untreated. Buyers should have a thorough home inspection completed on any home before a purchase, but especially a short sale.