Mistakes to Avoid when Buying a Short Sale

Short sales – like all kinds of distressed properties – can be a fantastic deal for buyers. In fact, they’re fast becoming a popular choice in areas where home prices are high and inventory isn’t keeping up with demand. While short sale purchases can take a bit longer than tradition sales, it’s really not all that different than traditional sales. That is, if you avoid the pitfalls.  Below are a few things you’ll want to steer clear of as you’re searching for a short sale that meets your needs.

Overlooking property problems

Short sales are often lived in – as opposed to foreclosures, which are typically vacant – but if a homeowner can no longer afford mortgage payments, they likely could not afford to address necessary repairs that popped up over the years. If you see or suspect problems, don’t ignore them. It’s important to be realistic and know that if a home has too many problems that will be too costly to fix, it’s probably not the right choice for you.

Skipping the inspection

Cosmetic problems are easy to identify and fix; however, there may be unseen problems in the short sale you’re considering. You’ll want to hire an experienced inspector to check out the property before you sign on the dotted line. Sure, you’ll have to pay for the inspection, but it’s a pretty small price to pay when you consider the costly problems that may be lurking below the surface.

Needing to move quickly

Despite their name, short sales can and do typically take a bit longer than traditional sales. It may be a few extra days, weeks or month, depending on the property and lender. What’s the hold-up? The short seller’s lender has to grant approval of either foreclosure terms or a short sale price that is less than the seller owes. This can take a bit of time, so you’ll need to be a bit patient.

Even though they can take a little longer, because of their lower price points, short sales can be an ideal choice for many buyers. If you’re interested in seeing short sale properties available in the metro area, give Metrowest a shout – we’d love help 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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