Things To Consider When Buying A Short Sale

Things To Consider When Buying A Short Sale

For those of you who do not know what a short sale is, it is when an individual defaults on mortgage payments and they need to resale the property, in order to settle the outstanding balance. In this article, we will be discussing some of the things to consider when buying a short sale.

Mortgage Lender Must Agree To The Short Sale:

Firstly, there will be no short sale if the mortgage lender is not on abroad. The reason being, in a short sale the property is being sold at a lower price than what is owed to the lender. Therefore, lenders need to give permission because they will not be getting all their money back. However, mortgage lenders only agree to short sales, if an  individual has no other option, but to sell the property this way. Furthermore, they will have to present evidence that they are facing difficulty.

Home Pricing:

Secondly, the price of the home must be in line with the current market value. Although, a short sale is taking place, the home still needs to sold at it’s current market value. However, it is important to note that the market fluctuates and this could affect the value of the home.

Potential Buyers Need to be Aware:

Finally, whenever a potential buyer takes interest in the property, they need to be informed of the short sale. Moreover, they need to be aware that the property is being sold for less than what is owed to the mortgage lender. Therefore, negotiations and other procedures regarding the property will be done through the mortgage lender and not the seller.

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