With housing sales moving so quickly, your real estate professional may ask you to consider a short sale.

If that term is new to you, a short sale has nothing to do with the time it usually takes to buy a home or a condo. Think of it more like a rescue. 

In a short sale, you’re offering an asking price that’s less than the amount due on the mortgage. If the mortgage lender accepts your offer, then and only then will the deal move forward, and you’ll be helping the owner avoid foreclosure. The lender will get all the proceeds.  

Here’s what you should ask before you proceed with a short sale: 

What to know about buying a short-sale home?  

Do your own homework and follow the lead of your real estate pro who has the short-sale expertise. Understand the lender has to approve the transaction before your offer will even be considered. If you can proceed, know the transaction will take longer and involve more paperwork. The deal may even fall through. If you can wait for a vacation home sale in Boca Raton for instance, this may be a perfect sale situation for you. But if you need to move quickly for a new job or a family situation, a short sale may not be realistic. 

What are the benefits of buying a short-sale home?

The benefits are mutually beneficial. You buy a property for less than its worth in that market. You’re helping the owner avoid foreclosure and eviction. The owner may even be allowed to stay in the property until the transaction goes through. 

How does a short sale work? 

Know what’s out there and ask your real estate professional what’s available in that market. See what that property is worth online. Ask what offer to make that would be acceptable to the mortgage lender. Be prequalified as a buyer. Make certain the property is in good condition and doesn’t require more fixes than the amount you would save. Then it’s a waiting process.  

Posted by Lang Realty Blog on
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