Those considering buying a short sale doubtless know about the appealing benefits. And it certainly is true that your dollar will go further in the purchase of a short sale home than it would otherwise. Still, there are practical considerations regarding these sales that every potential buyer would do well to inform themselves about, says a foreclosure attorney specializing in short sales. Keeping informed will save a lot of headache and better prepare a person for the purchase process.
Short Sale Hurdles
A big hurdle in the purchase of a short sale is the time involved. The numbers vary wildly, but there is a consensus that a short sale will take longer than a traditional home sale. Pessimistic numbers can range to over a year and more, while others say the length is only marginally longer than that of a “normal” home sale. The bank overseeing the sale has already been burned once, and will want to make extra certain that this sale does not end up in foreclosure, which can extend the purchase process to be sure.
Short sale closing costs also tend to be higher. The lender will be less willing to negotiate the various costs associated with closing when dealing with a home that has already lost value in the short sale process. Be aware of all the closing costs that may be involved; you will probably still come out ahead in the long run, but it may cost a bit more up front than you had anticipated.
These hurdles can be either an annoyance or an actual hindrance, depending on one’s situation.