7 Points about Buying a Short Sale

What is short sale?

Home values is the lower than the Mortgage balance on the property. Then sellers do not receive enough cash from a buyer to pay off their existing mortgages, providing lenders agree to take less than the amount owed to them.
1) Seller Qualifications.
Sellers must prove a hardship and submit evidence of the hardship to the lender for approval. Some agents list homes as short sales without ever talking to the lenders or pre-qualifying the sellers.

2) Seller Agent Qualification.
Inexperienced real estate agents might push a seller into considering a short sale when the seller does not qualify for a short sale.The Listing Agent list home so low that buyer think that they are getting a Bargain.


3) Homes Sell close to Market Price.
In Fact, The Lenders will have the third party appraiser or independent broker to look into the value. Lenders often agree to a short sale if the contract price is close to the true value of the property.

4) Homes Sold with as is condition.
Since Seller get no money in the short sale process, then the buyer end up buying the property as is. It is wise to the Home Inspection to see what you are getting.

5) Lenders take their time.
Most often that Lenders takes as much as 3 month to process a short sale. So give your self ample time and be prepared to close once the Lender approve the short sale.

6) Lenders change the terms of the contract.
In order Lender to maximize of what they get out of deal. Often do not pay all closing cost neither as much as commission to the agents, taxes and or back dues HOA Fees. A Good Buyer Agent get all the facts up front.

7)Hire a Experienced Buyer Agent. So A buyer Agent have to ask a lot of qualifying questions to make sure that the buyers and sellers are not wasting their Time.
For the past 24 month I have successfully represent Buyers and sellers in short sale process.