For many people, owning a home is a right of passage. It’s a rewarding experience that creates a foundation, a central location, a place that’s all their own. For some, finding a home quickly, without going through a bank to get financed, a short sale is the answer.
A home short sale is when the owner of a property can no longer financially support the monthly payments to the lender and negotiates for approval to sell the property to a new buyer for less than what is owed on the loan. Those looking to find short sales should consult realtor experienced in marketing and selling short sales to provide you the short sale help and answers about thee different types of home short sales and short sale condos.
Unlike in a foreclosure, the bank does not own the property in a short sale like it does with a foreclosure. Still, the bank must approve the sale so it will seem like the buyer is purchasing the property from the bank. Short sale transactions can take a lot more time and involvement that traditional home purchases and, therefore, the purchaser must demonstrate extreme skill in patience.
In some ways, buying a home short sale foreclosure property is just like a traditional purchase. Here is where it differs. The contract between buyer and seller will specify that all terms are subject to the mortgage lender’s approval. In the case of a normal transaction, it is only the seller who would need approval for sale. And unlike traditional transactions, during a home short sale, the contract will state that the property is being purchased “as is” meaning that they buyer understands what he or she is getting approval to purchase. Of course, the contract can include language that allows the buyer to back out of the deal if there are major problems discovered during the home short sale inspection. But in general, the buyer should not expect the bank to lower the price or be involved in that capacity. The buyer should also expect to cover all closing costs and attorney fees out of pocket in a home short sale.
In all, home short sale purchases can be a great way to buy a home. Those who are interested in the pursuit should know the facts about home short sales before they head down that path.