Homeowners who can no longer afford to make their mortgage payments have other alternatives to bankruptcy or foreclosure. One of their options is called a “short sale.” When a lender agrees to consider a short sale means they will accept less than the total amount due as payoff on the mortgage loan. A short sale can be an excellent purchase because it allows the buyer to purchase a home below the current market value, but it can also be a complicated transaction when compared to a traditional purchase:

• The offers are subject to approval by a third party, typically the mortgage lender, not the homeowner.
• The timeframe for an offer’s review and approval could take several months. Many times the lenders accept various offers, which could provide the buyer a frustrating situation not knowing the status of their offer.
• In many cases the lender may consider paying for repair expenses and/or buyer closing costs.
• The timeframe to close a sale could take several months.

Short sales can be incredible buys! As a potential buyer, you may submit your offer at a reasonable price. If the lender believes it is more profitable to accept your offer than to let the home go to foreclosure, your offer has a good chance to be accepted.

If you would like to receive more information on how to purchase a short sale listing at a great price, please contact us.