There many great homes out there that can be purchased at a reduced rate but are you aware of what is involved when you pursue purchasing a short sale?
The standard rules may not apply....
A short sale is different from a property that has been foreclosed on. When you buy a short sale the home is still in the sellers name. A foreclosure is when the bank has forced the sale and now owns the home.
It is important you realize that in many cases the sellers of the home are having financial issues. In most cases the home is being sold as is with the buyer being responsible for obtaining any needed permits and the certificate of occupancy.
That could mean no credits for home inspection repairs....
The more you know the smoother the whole transaction willl be
Understanding the process....
You're a good candidate for a short sale purchase if:
You are a very patient person- Remember that even after the sellers have acceped & signed the offer. The lender or lenders will need to review and accept the offer as well.
Your financing is in place- The banks do not take contingencies
You have a place to stay- Trying to coincide a closing on your purchase and the sale of a home will not work. Be prepared to have a place to stay if you close on your home prior to your purchase.
If you are serious about buying a short sale property, it's important that you have expert advice. Do not take any short cuts. Many of us have a friend of maybe even a family member who is a banker, lawyer or a realtor. This is not the time to have somone do you a favor. Make sure that you use someone you knows the process. Saving a few bucks is nice but not so nice if it hurts the deal. You want to have an expert who understands the in's and out's of exactly what is going on.
A short sale purchase can be a wise and smart investment but be sure you go in head first with all your cards out on the table.
Good luck, I hope that my blog has answered some of the questions you may of had and helps guide you the rest of the way.