Avoid these Mistakes when Considering a Short Sale

Contrary to their name, short sales can often take longer to close than traditional transactions. Still, if you’re on a somewhat flexible timeline, these types of properties can actually be a great deal for buyers. As with any type of purchase, it’s important to know what you’re in for along the way. Here we’ll give you a rundown of pitfalls to avoid if you’re considering buying a short sale.

What is a short sale?
A short sale is when a house is sold for less than what the homeowner owes on it, and the lender does not get all of its money back. This type of sale can only happen with the lender’s permission.

Mistakes to avoid:

1. Skipping the inspection
A thorough inspection is the only way you’re going to fully understand the work that will need to be done after you purchase the home. Skipping this step could result in costly (and unexpected) repairs down the road. Ask for repair estimates when an inspector points out a problem, or do some research of your own later.

2. Being on a tight timeline
Short sales won’t close as quickly as a regular home purchase. The short seller’s lender must approve the foreclosure terms or short-sale price, which will be less than what the seller owes. Even so, banks may be slow to respond, so patience is key during the process.

3. Not knowing when to move on
Despite a horrible inspection or costly fixes, some people fall in love with a particular house – even a short sale. It’s important to be flexible with your options and understand what you truly can or can’t afford in terms of improvements or renovations. Don’t fall too hard for a house that won’t absolutely work with your budget.

If you’re considering purchasing a short sale home, the best thing you can do is contact an experienced pro to help you start the process. Metrowest specializes in these types of sales – give us a shout today and let’s get started!

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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