Short Sale may not be that familiar to you but it is one of the properties you buy in the market. As a buyer, you need to understand how short sale goes because the process can be a complicated one. If you happened to be interested on a property like this, there are certain things you need to know to avoid problems in purchase. But first things first, understand what short sale is all about. 

Short Sale Overview 

In attempt to avoid foreclosure, homeowners can go to a short sale. But it is not something that a person could just decide to do. Short sale needs approval from lenders and there are tons of requirements that a homeowner need to present for it to be approved. Aside from that, this option is made available to those who have equity, at the same time, who is currently undergoing hardships. Other than that, there is a big chance that the short sale may be rejected. 

So if you have been eyeing on a short sale, here are some tips to keep in mind: 

1. Seek help from agents who have experience in handling short sale. Experts in this field are highly needed since the whole process is an intricate one. He or she should have the knowledge in making effective solutions whenever you are faced with a problem during the waiting time. 

2. When you visit short sale homes for your viewing, do an investigation. If you have time talk to the homeowner or ask the real estate agent the reason behind the short sale. Evaluate if the hardship is most likely acceptable or not. Otherwise, you can just go ahead and find other homes in the market. 

3. In the standard practice of home buying, when a buyer signs the purchase contract or agreement, he or she is legally bound purchase the property. If he or she decides to rescind the purchase, a breach of contract occurs. Since short sales are still subject for approval, the purchase of the property must be contingent to the lender’s approval. This includes specifying your tolerable waiting time. Other than that, you can freely cancel the purchase. 

4. Make sure you make the right offer. The likelihood of short sale to be accepted is high when the price is close or more than the brokers price opinion. Therefore, before making an offer, review the CMA and lever your purchase price from there. 

5. Get pre-qualified or pre-approved. If you want a faster home buying process, then have the lenders check into your financial capabilities. This is also the best way to let the lender know that you are serious in purchasing the property. 

Short sale may not always be the best property in the market but it can be affordable. If you want to pursue buying such property, you need to have patience. Aside from that, you also have to be smart. Evaluate well the chances of the short sale to be approved and give the most attractive offers.

This entry was posted on Saturday, September 4th, 2010 at 9:10 pm and is filed under Lender Approved Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.