Purchasing a short sale home can be a hassle to say the least, but most of the time it’s often worth it if it means the ability to save a ton of money on a property you are really interested in. However, don’t get too excited if you found your dream short sale property and expect to close in 30 days and have a stress free experience. The truth of the matter is there is typically quite a lengthy process involved in purchasing a short sale property and you will definitely want to prepare yourself for what to expect before jumping right in. Here is a brief breakdown of the steps that you will more likely have to go through in order to get your hands on big savings by purchasing a short sale home.
Of course the first step is locating short sale or pre-foreclosure property in your area and price range. You will definitely have to go through all the normal home inspections in order determine the cost of repairs and renovations
It’s extremely important to discuss the mortgage and lien situations with the seller’s agent as short sale properties are typically being sold because the owner is unable to satisfy the loan. This means in order to purchase the property; you are going to have to satisfy the loan. Short sales typically only take a few weeks so you will have to discuss the mortgage with a lender immediately.
Getting prepared for the short sale is a process that is typically much more in-depth than your average property sale. You will have to prepare a proposal for the lender that includes your application, statement of property value, letter of authorization, settlement statement, liabilities and cost details, and sale and purchase contract.
Remember, just because it’s a short sale doesn’t mean the lender or seller has to accept your offer.