“Should I Buy a Short Sale?”
Hi Joe, I am looking at a house which is up for "short sale". Would we be able to do the same type of transaction/loan as last time with a house on short sale? Why do people do a short sale? Is it to their advantage? Is it like bankruptcy?
Ruth
I
couldn’t understand that the Realtor did not adequately explain the
answers to these questions. I decided to call my clients to listen to
what they had been told.
These
clients have an opportunity to purchase a home at a very good price and
it is a property that fits their needs. But there could be many
challenges as with any short sale. With these clients it may be a good
solution for their specific needs:
Positives:
1) They are in no hurry.
2) They need to sell their current residence.
3) Their home is desirable and can get top dollar.
4) If their home sells before the short sale is approved, they have a place to live.
Negatives:
1) The short sale may take months to be approved.
2) The short sale may never be approved.
3) There will be costs, home inspection and appraisal, all of which could be wasted if the short sale isn’t approved.
Based on the discussion, the client will move forward with an offer on the property.
Image courtesy of StuartMiles/freedigitalphtos.net
