Buying a Short Sale Home
What is a Short Sale?
In a short sale the bank (lender) agrees to accept less than the amount owed on the mortgage of a home. This benefits the bank by allowing it to avoid the foreclosure process on the home (which can be both expensive and time consuming) and it benefits the seller by allowing him/her to avoid the extensive negative credit ramifications of going through the foreclosure process.
How Does it Work
In a short sale the bank does not own the property but because the bank must approve the sale (because it is the lender, not the seller taking a loss on the property) it almost feels as though you are buying the home from the bank. Short sale transactions can be more time consuming and patience testing than foreclosure purchases.
First off you will need to find a short sale home that you are interested in. This shouldn’t be too difficult in today’s real estate market. Up to half of the homes in certain areas are distressed properties. We can help you by providing you a list of short sale listings in the area and we can visit them together.
Once we find the home that you are interested in purchasing we will work out an appropriate and strategic offer price on the property. Once the seller accepts our offer it will then need to be sent to the lender for approval. The offer is not official until the lender accepts it. It is common for the lender to ask for an increase in offer price and will likely require that you be pre-approved for financing on the home. This is the part of the process that can take several months and that can be frustrating to the potential buyer. Once the bank accepts the offer the process will proceed.
It is important to work with a real estate team that is familiar with the practice of purchasing short sales. Purchasing a short sale is complicated and mistakes are easy to make. We will be sure to craft your short sale offer so that it will protect your interests.
Interested?
If you are interested in purchasing a Utah short sale, please contact us. Our experience and knowledge will make the buying process a pleasant one for you. If you have further questions about short sales or about Utah real estate in general, please don’t hesitate to contact us.
