subject: Tips For Buying A Trophy Club Short Sale [print this page] Tips For Buying A Trophy Club Short Sale Tips For Buying A Trophy Club Short Sale
Pricing
Whenever a seller who can no longer make the mortgage payments requests the lender agree to sell the house to a qualified buyer for under amount of the loan, the transaction is known as a short sale. But don't think this means you will get a great "deal" because the lender isn't prone to agree to sell below market. Selling for less than the loan amount does not always mean the house is priced below what would be considered below market. Remember, many homes are listed today as short sales because the homeowner bought at a significantly higher price than what the house may be valued at today. This isn't to say that purchasing a short sale is a bad investment, simply that it's usually not a "steal."
Additional Costs
Lenders rarely pay for services normally thought of as "Seller's Fees." Expect that transfer fees, home inspection fees, termite control issues and/or repairing a leaky roof may be your responsibility. In traditional real estate transactions the purchaser often orders a
home inspection to insure the property has no hidden defects. Problems, which are discovered, then become negotiable items. One example is, if a leaky roof is discovered and the seller refuses or is cannot repair it, the buyer might choose to make a lower offer on the property.
Escrow
Because many lenders are swamped with paperwork lately and especially when there may be several lenders involved, expect the escrow process to take a much longer time than a standard escrow. Some short sales close in 60 days. Others might take considerably longer depending on the situation. Short sale timing is something to take into consideration should you be hoping to coordinate the closing of the short sale with the closing of the home you are selling.
Forewarned is Forearmed
If the home you are considering meets your requirement and you take a few simple precautions, buying a short sale may perhaps be just right for you. Some precautions you should consider include: ensuring the house is priced at fair market value or below; be certain that you're pre-approved and that your agent submits your offer and documentation to the lender when the seller accepts your offer.
