BUYING A SHORT SALE
What is a short sale?
When the liens on the house total more than the fair market value of the house – It may qualify for a short sale. With a little patience you can get a good deal on a short sale. The short sale bank will often take a discount off of the fair market value.
The best deals and deepest discounts are had when the short sale property is in disrepair. Major disrepair will get you the house CHEAP!
A house that may need a new roof, new mechanicals, kitchen and bath,may not be eligible for a conventional mortgage. This eliminates most of the buyers, leaving cash buyers to make their bid.
The process is the same. You make an offer, the seller accepts it, then it goes to the bank, or banks, for acceptance. The banks collect paperwork to ensure the seller has a financial hardship and they send out an appraiser to determine the value. This process takes 6-16 weeks depending on the bank and the investor behind the loan(s). Once the banks accept-they send a one page acceptance letter approving the short sale.
The closing is the same as a non-short sale. You get clean, clear title. And for your patience, the house is yours-at a good price!