Short Sales for Buyers
What Buyers Need to Know about Short Sales
Homebuyers sometimes cringe at the term ‘short sale’ yet short sales can present attractive opportunities for those with patience, as homes usually sell at a market discount.
A short sale occurs when a lender accepts less than what is owed on a property, and forgives all or a portion of the excess debt. For a short sale to close, everyone who is owed money must agree to take less — or possibly no money at all — which makes the transaction complex and time consuming.
If you’re considering buying a short sale home, understand that it often takes longer than a traditional sale because of the documentation required and the sign–off needed by the lender. The entire short sale process hinges on the hope the bank approves the sale, takes the loss, and eliminates the costly process of foreclosing, clearing, and reselling the home.
When homes list as short sales, they are more likely to be maintained as sellers still want to get as much money as they can. Still, a seller probably won’t make any big home improvements so be prepared to make some repairs and improvements on your prospective home.
The best advice is to work with a Prudential Real Estate Agent who has experience in short sales. Our agents can help you expedite the transaction and will protect your interests. By checking recent home sales in the area to get a better idea of which properties are selling, our agents will work with you to establish an appropriate price that a bank would be more likely to approve.
Understand that with a short sale there is no leniency with the closing escrow date. As the buyer, you must close on time. Because of this, take care of all loan paperwork immediately after opening escrow.
A Prudential Real Estate Agent will help ensure that nothing falls through the cracks and all your paperwork is completed when needed.