Buying a Short Sale Home
Welcome future homeowner! If you have been hearing a lot about short sales lately, that`s because many homeowners who are struggling to afford their monthly mortgage payments are now entering into a short sale. A short sale occurs when a mortgage lender agrees to take a lesser amount than what is owed on the home in order to avoid foreclosure. Many of the homes on the market now are short sale homes. Buyers do need to know the pros and cons about buying a short sale home on the market. A competent REALTOR® is your best source for finding short sales within your area and helping you work with the seller`s bank to make a short sale offer. Let`s look at the advantages and drawbacks of the short sale from a buyer`s perspective.
Many times, a short sale listing price is ridiculously low, and the lender ends up now approving it, which is a frustrating and misleading to potential buyers who are looking for a short sale. The low price usually creates multiple offers. This can be frustrating for serious home buyers. Short sale properties are usually sold `as is`. Of course, this does not waive the buyer`s right to inspect the property and walk away from the escrow if needed.