Buyers pursue short sales for two primary reasons: firstly, they genuinely like the house and secondly, to get a good deal. The biggest drawback to this type of transaction is the time it takes to close – the term “short sale” is a bit misleading in this regard. But if you’ve got a flexible timeline, this could be a great purchase for you.
A successful short sale means the seller’s lender is willing to accept a discounted payoff to release an existing mortgage. As a potential buyer, it’s important to understand that just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it. That’s because sellers need to qualify for a short sale.
The first thing you’ll want to do is find yourself an agent with short sale experience. He or she will help to expedite your transaction and protect your interests.
The second thing you want to do is check public records. It’s important to do your research before making an offer to purchase a short sale. Your agent can find out who is in title, whether a foreclosure notice has been filed, and how much is owed to the lender. This is important because it will help you to determine how much to offer.
In the short sale scenario – and really this goes for any type of housing you wish to purchase – you’ll definitely want to have your finances in order and get preapproved for a mortgage. Don’t be surprised if the lender asks for a copy of your earnest money deposit, proof of funds, and mortgage preapproval letter.
After you’ve found the perfect property and submitted your documentation and offer, you’ll just have to hurry up and wait. Depending on the situation, some buyers wait six weeks to six months to close on a short sale, but if you’re willing to wait it out the payoff could be great.
If you’re interested in checking out short sales available in the Mile High City, contact Metrowest. We specialize in these types of sales and would love to help you start the process!