Short Sale Home » Short Sale Buyers » Before Buying a Short Sale

A short sale is an alternative to bankruptcy or foreclosure for homeowners who cannot afford their home.  In a short sale, the lender(s) accepts less than the total amount due.

Short sales are not a ‘steal’.  There are a few points to remember before diving into a short sale:

• Choose a Realtor that has short sale experience.  A qualified, experienced real estate agent is essential when processing a short sale.
• Don’t expect a listing to advertise that it’s a short sale.  Language may say “all offers must meet seller‘s bank of approval”.
• Know that a seller’s lending bank makes the final decision regarding an offer.  The seller may accept your offer, but the bank may turn it down.  The seller is required to submit all offers to the bank for approval.
• Do not submit low-ball offers and expect them to be accepted by the bank.  The bank may not respond if the offer is too low.  If you haven’t heard back from the bank, the offer has not been accepted and you can submit a new, higher offer.
• Don’t expect to close a short sale in a timely matter.  These deals involve a series of extensions which may delay closing and can be very frustrating for those buying a short sale.

Tags: bankruptcy, experienced real estate, foreclosure, short sale