Purchasing a Short Sale House

Are you considering purchasing a new home or a real estate investment property? The current turmoil in the housing market offers astute prospective buyers excellent opportunities to buy real estate at a discount. A record number of property owners are either in or at risk for foreclosure. Foreclosure, however, will destroy the credit of a property owner. An alternative to foreclosure is a short sale. In a short sale, the home owner and loan company agree to sell a home for less than the amount owed on the loan.

Below are the things you need to know before purchasing homes that are offered as part of a short sale.

WEB

Tap into listings services over the web to broaden your choices. You can find a huge selection of distressed properties on the market today that it would be difficult to personally check on them one by one. Listings, on the other hand, provide an extensive list of these houses across the nation. Their resources and tools also let you identify short sale houses that meet your specifications.

DISCOUNTED

If you are in the market for short sale homes, you should prepare your finances ahead of time as their availability could be very volatile. Just be sure you have enough funds or credit line to pay for any transaction. Just in case you will require additional resources, you need to get lenders' nod for pre-qualification for a financing or mortgage.

AS-IS

No matter what happens, you must not get too excited about the sale just because it is more affordable or something. If you think that you will be saving money by accepting the "as is" term, you'll need to wait after you get the house as you will be surprised of how much money you're going to invest repairing things. If you wish to stay safe, you should hire an inspector to ensure everything is as promised.

WAIT

Be ready to wait somewhat from seven to three months. The wait time depends upon the bank you're dealing with. After you give an offer, many banks will let you know what their counteroffer is. If the house is owned by Countrywide, that might not be the situation. Countrywide will only tell you if they accept your offer or not, leaving you guessing on what's next.

HIRE

Get a professional guidance. This option should not only be considered when thinking of buying a short sale. I advise people to get a professional agent to handle everything in the process. A professional agent could save you lots of time, effort and cash comparing to when you try it for yourself. Make perfectly sure that the property owner, you and the real estate agent submit all proper information. The owner has to submit a letter of hardship to the banks and begin the conversations about doing a short sale. When this has been completed, you'll need to make an offer to the seller, that is if you are truly interested to purchase the property.

Provide money for fee pay from your own wallet. In short sales, the lender will probably pay the home sellers commission and make a deal a final price. Before you sign any agreement with your local real estate professional, ask the bank if they are willing to waive the difference due. Often they won't agree so you will have to pay this on your own. It's also better if you investigate about the seller. Find out the main reason why they'd difficulties for mortgage. Determining the type of problems they're going through gives you an idea on the possibility of getting the short sale accepted. Get pre-qualified for financing. In case you are serious on Home Buying, you need the required money to purchase it. If you need to get mortgage for it, then start working your application in advance.

Buying a short sale could be a great way to get a home at a great value, however, you have to be prepared to do your research and be very patient. When you get into the process knowing what to expect, it will make it easier. Always work with your real estate agent to determine the correct price for your offer, the realistic time lines, as well as the condition of the home. This is really an action you don't want to do on your own! A good, local real estate professional can handle all of the dirty details of a short sale for you. If you take the time to carefully evaluate your property and patiently wait it out, you could get a super deal and find yourself happy in your new home.