Have you found an amazing deal on a property, only to find out that it’s a short sale and aren’t sure what that really means? You can still get that great price, but you’ll need to become a bit more informed about the short sale process. Here’s a few tips if you’re looking at making this type of real estate purchase.
What is a Short Sale
So what is a short sell? In real estate, a short sale means that the property owner’s lender is accepting a discounted payoff to release their mortgage. This usually happens when someone has fallen behind on their mortgage payments and is at risk of foreclosure or whose property value has dropped far below the amount of what they owe.
Work With an Expert
Short sales can be a way to secure a property at a discounted price, just make sure you have someone assisting you that is experienced in the process. Work with a realtor or agent who is familiar with short sales and who can walk you through the experience. The hot price can be appealing, but you don’t want to act without knowing all the technical details.
Don’t Buy As-Is
Often a short sale or foreclosure home can come with an “as is” condition of the sale. This could leave you with home repairs and other problems that could lead to major expenses. If this is included as a condition of the purchase, then it’s smart to get a home inspection prior to purchase just so you really know what you’re looking for.
Work With The Lender
Yes, the homeowner has to agree to the purchase price, but so does their lender and they’re the ones approving the terms and payment. This can also get complicated if there is more than one loan on the property. To make things work as smoothly as possible. This process can take quite a bit of time, and can sometimes be complicated, so make sure you work with an expert like Schwartz Sale San Diego or someone in your own community.
Note: I’m not a real estate or legal expert, nor do I play one on TV. For the best guidance in any real estate transaction, be sure to contact an expert.