Avoid These Mistakes when Buying a Short Sale

Purchasing a short sale can be a great way for buyers to break into homeownership. While the process can take a bit longer than traditional home sales, buying a short sale is appealing to many buyers for primarily one reason: price.

While it’s possible to get a short sale at a great price, there is still homework to do. To follow is a list of things to avoid to make sure buying a short sale is as painless as possible.

  • Don’t ignore property problems
    If homeowners are facing foreclosure, they typically don’t want to leave their homes. Some take their anger out on the home or completely ignore structural and safety issues that should be addressed immediately.
  • Don’t skip the home inspection
    Tag along on your home inspector and ask for repair estimates when he or she notes a problem.
  • Don’t ignore legal info
    A typical disclosure statement would indicate if a house was in a flood plain or had any unpermitted renovation, but because bank-owned properties often sell as-is without disclosure, you may need to do a little extra research on the home’s status.
  • Don’t ignore your timeline
    Short sale and foreclosure homebuyers need to understand the sale won’t necessarily close as quickly as it would for a traditional home. The short seller’s lender must grant approval of either foreclosure terms or a short sale price that is less than the seller owes, so if you’re on a tight time frame to move in, a short sale may not be for you.

Ready to start checking out short sale properties in the Denver area? Contact Metrowest. We specialize in these types of transactions and would love to help you start the process!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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