Thinking of buying a short sale property? 
If so, there are some things you need to know:
A short sale means the seller’s lender is
willing to accept a discounted payoff to release an existing mortgage.
However, just because a property is listed with short sale terms, that
does not mean the lender will accept a buyer’s offer, even if the seller
accepts it. Buyers pursue short sales to get a good deal, but lenders
are reluctant to accept offers that are below the current fair market
value of the property.
Short Sale properties tend to present a
variety of risks for a home buyer. Homes are frequently sold “as is”,
which means that no repairs will be made by the seller or lender.
Therefore, most agents recommend a home inspection to determine the true
condition of the home and to get an estimate of repair costs.
Overall, the short sale process tends to
be lengthy, and in some real estate markets, fewer than one in 10 short
sales close for a variety of reasons. The entire short sale process
can be very challenging; however, working with a real estate
professional who is experienced in short sales can increase the odds of a
successful close.
A buyer considering a short sale should
consult with an attorney and/or a licensed tax professional to
understand all obligations relating to a short sale.
Resources:
- http://www.biggerpockets.com/renewsblog/2008/02/12/tips-for-navigating-the-short-sale-process/
- http://www.realtor.org/realtors/short_sales_tips_tools
- http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/short+sales+tips+for+buyers
- Foreclosure Avoidance Resource: http://www.hud.gov/offices/hsg/sfh/hcc/fc/index.cfm
- Bank Resources:
