Short Sale Home » Short Sale Buyers » Are You a First Time Home Buyer?

Buying a home can be life changing and for many first time homebuyers – it can feel a bit risky.

Buying a short sale property can be frustrating to both a first time home buyer or veterans of the home buying process.  A short sale can take a long time, be quite frustrating and if the lender refuses the offer, it can be lead to unsuccess.  But if it works, it can be a good deal.

A short sale typically happens with a seller cannot make his loan payments due to a divorce, death, job loss or some other hardship.  When a home rises in value, the owner can sell the house and pay back the lender.  Although, if home values drop (as they are doing today) and the owner has build up no equity, that isn’t an option.  Some lenders will accept less than the amount owed to avoid the hassle.

It pays to hire a professional real estate agent and facts before making an offer.  Don’t assume that the home is a bargain.  Find out what are the comparables, whether a foreclosure notice has been filed, who owns the loan and hoe much is owed.

The seller of the property may eagerly accept your offer, but make sure your purchase agreement includes an addendum stating that the offer is contingent on the acceptance of the lender or lenders.

Even thought the deal may be advertised as-is, make sure the deal gives you the right to have and approve a home and pest inspection by qualified professionals since short sellers may have given up maintaining and repairing their homes.

You should also place a time limit on your offer since short sales rarely take a short time to complete.

Tags: first time home buyer, home buying process, real estate agent, short sellers