Short Sales – 3 Tips to Remember When Buying a Short Sale Home
Buying a home which is out on a short sale is almost considered by many persons as a delicate step. For them, it is a hassle that mostly results in failure. But with the right urge and of course, the right moves, buying a home put in this tag can indeed be profitable for you.
Seek the full cooperation of the seller
Short-sales generally make a seller walk away with his property without a single cent from it. But despite this being a reality, buyers can always seek the full cooperation of the seller. Give the owner ample time to look for a house for relocation. Eviction is a very hard situation for the owner and in many cases cause great distraught.
If you are buying the house for investment, consider the seller as a candidate for tenancy. Just be sure to be clear with the terms and conditions when you are converting the house to a rental property.
Seek the lender’s approval on the short-sale
The house is being put in this tag because the owner has failed to update his payments on the mortgage. The lender has all the legal rights to pursue the remaining amount out of the financing scheme in which the sepller and the lender agreed earlier as a deal. Work out with the lender because they will usually see a short-sale as a rather favorable move than a foreclosure.
Foreclosures brings back a house to the lenders stable of properties. This means they have to shell out considerable amount of money in a monthly basis for maintenance and property taxes. If you’re thinking on the bright side of it, you can easily see that a short sale will look better for a lender. Maintenance and property fees will be out of the lender’s shoulders. It will also be far more favorable in terms of affecting the lender’s reputation and stats.
Work out with a reliable real estate agent
Short-sales should never be considered as a DIY endeavor. It is very technical and complicated. It involves a lot of negotiations not only with the side of the seller but with the lender’s side as well. To ease you out on many technicalities, be sure to work with a reliable and reputable real estate agent. Not all agents have the technical expertise on short-sale homes so be sure to tap one who has already worked on a short sales before.