Tips for Purchasing a Short Sale

: Chris Lee Law Firm

  Filed under: Short Sales

short saleAlthough short sales are popular among real estate flippers primarily interested in purchasing property at a deep discount, remodeling or making some repairs, and then selling it for a considerable profit; they’re also a great way for prospective homeowners to get a great deal on a house they might not otherwise be able to afford.

Do Your Research

Sometimes short sales can be deceiving.  While a lender may be willing to settle the debt owed to it for one price, it’s possible that multiple mortgages have brought multiple lenders into the picture.  If money is owed to two or more of them, it’s possible that they will want some sort of settlement as well before releasing the lien on a home.  It’s also important to know what homes are selling for in the area.  Valuations can sometimes be misleading.  Even though a home might be worth one value, the price it might actually command on the market may be something entirely different.  In such cases, the good deal of a short sale might not be such a good deal.

Make a Fair Offer

Just because a lender is willing to part with a property for a lesser amount than what is owed, it doesn’t mean it’s going to be willing to give it away.  Remember, it’s trying to re-coup some of its losses in agreeing to short sale the home.  In general, if the price you’re offering the lender is something that would make you laugh if you were on the other side of the deal, it’s going to make the lender laugh, too.

Hire the Right Agent

Some agents are particularly experienced with short sale properties and can put in much of the sweat equity that can be involved with obtaining a short sale for you.  The right realtor knows how to research a house to determine whether there are any judgments or liens against it as the result of loan modifications or refinancing as well as negotiate the right deal with the lender.

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