Short Sale Tips for Buyers

Considering purchasing a short sale? For many it’s a great way to break into homeownership and find a more budget-friendly deal – especially in a hot market like Denver. Here we’ll cover a few tips about the short sale buying process. If you think a short sale may be the right buy for you, these tips will help navigate the process.

What is a short sale?
Simply put, a short sale is the sale of a property for less than what the owner still owes on the mortgage. It’s an alternative to foreclosure when a homeowner needs to sell and can no longer afford to make their mortgage payments. Before you find the short sale property of your dreams, consider the following tips.

  • Find out how much you can afford.
    Whether you’re buying a cute fixer-upper or a turnkey single family home, you need to know how much you can spend. Contact a lender to get pre-approved for a mortgage loan. After answering a few financial questions, the lender will be able to tell you how much of a loan you qualify for. This step is crucial – not only will it help keep your budget in check, you’ll be able to put in offers in a timelier fashion if you’re already preapproved for a loan.
  • Find a professional experienced in short sale transactions.
    Probably more than any other type of transaction, a short sale should be handled only by a real estate broker who has substantial experience with the short sale process, and a strong track-record of success in negotiating short sales for their clients.
  • Identify properties.
    Your agent will be able to show you any short sale listing that lines up with what you’re looking for. Keep in mind these properties may be a great deal, but they may also be in need of repairs – sometimes minor and cosmetic, sometimes more significant. These brings us to our fourth tip, which is also very important.
  • Get an inspection.
    An inspection will run you anywhere from about $300 to $500, but it’s a small price to pay if it saves you from unexpected expenses down the road. A proper inspection can tell you if you’re going to need something minor like new flooring or windows. It can also save you from extensive repairs that may not be in your budget, like a new foundation.

If you’re ready to start checking out short sales in the Denver metro area, contact Metrowest. We specialize in these types of sales 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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