Navigating The Confusing Paths Of Buying Short Sales
People interested in buying short sales might be put off by perceptions that the process is too difficult or too confusing and the wait is too long
. However, for those who have done their homework and have the patience to complete the transaction, the benefits are numerous. Housing counselors have provided several information that every short sale buyer should know.
Role of the Lender
A short sale is a transaction under which the lender allows the sale of a property despite receiving payment that is less than what the borrower owes. In short, this type of transaction will result in some loss for the lender. Buyers should be aware that even if the homeowner or the seller has accepted their offer, the lender has the right to refuse and in such cases, the lender's decision determines the outcome of the negotiation..
In getting the lender to accept the offer, a buyer should have his loan approval documents ready. A deposit is also often required in these cases, with the lender most likely to ask for a higher deposit than the amount initially approved by the seller. People buying short sales should keep in mind that convincing the lender is the primary requirement in closing the deal.
Checking for Pitfalls
Buyers should always check public records to see who really owns the title to the property. Public records will also allow a buyer to find out whether there are still unpaid taxes attached to the property. These taxes will be the responsibility of the buyer in most cases and not knowing if there are taxes can blindside a buyer and force him to go over his budget.
These documents will also help the buyer determine whether there is a second mortgage associated with the property. This can create a problem since having a second loan will probably mean additional costs, not to mention another party to seek approval from. To navigate these ins and outs, a buyer should rely on the knowledge of a real estate agent.
Those who plan on buying short sales should keep in mind that a real estate agent is highly needed in these cases. Agents with considerable experience in short sale deals can help a buyer get through the process and secure a fair and beneficial agreement.