What is a Short Sale?
If you are ready to begin the process of purchasing a home, you may want to investigate buying a home listed for short sale. Short sale homes are houses listed below market value due to the previous owner’s inability to afford their monthly mortgage payments. For a home to go into short sale, the seller must show that they have exhausted other financial options, and the home’s value must be less than what they owe to their mortgage lender. The mortgage lender will then pay off the remaining principal balance left on the loan, giving the seller a better option than a foreclosure, since a short sale is a voluntary option compared to a potential foreclosure.
Purchasing a short sale home is not much different than other homebuying processes. You will want to first reach out to your mortgage lender to acquire a pre-approval letter and get referred to an expert realtor. After you find the home you wish to purchase, you will add negotiating short sale contingencies to your list of to-dos. Most short sale homes are sold “as is”, so if unexpected items turn up in the inspection, you are unlikely to secure further discount or additional contingencies.
The key to a smooth and informed short sale home purchase is to work with a mortgage lender and realtor you can trust and that will keep you informed every step of the way.
For more information, chat with us at callhallfirst.com or give us a call at 866-Call-Hall.