If you want to get a good deal on a new home, you may consider buying a short sale from a bank.
If you want to get a good deal on a new home, you may consider buying a short sale from a bank. Technically, you will buy from the homeowner with the bank's approval.
A short sale occurs when the bank agrees to let the homeowner sell the property for less than he or she owes on the mortgage. This is a tactic that is used to prevent full foreclosure proceedings that can be costly and time consuming for the bank. It is also less damaging to the homeowner's credit rating. Although the short sale process can be complicated, you may reap the rewards of saving a lot of money in the long run.
You can start the process by identifying short sale properties in the neighborhood where you want to purchase a home. There are several sources available online that can make this process easier. Short sales are listed by owner, with local real estate firms and sometimes by the lender as well. Once you find homes of interest, you can do a walk-through and order a home inspection. The inspection will disclose any needed repairs or overdue maintenance.
When buying a short sale from a bank, research the market value of the properties. You should thoroughly investigate similar homes in the area to determine if you are truly getting a deal or not. Although the price may be a fraction of the current homeowner's mortgage, it can still be high when compared with homes on the market in the same neighborhood.
A key part of buying a short sale from a bank is to arrange financing beforehand. Get pre-approved so you know which homes are in your price range. A pre-approval also expedites closing.
Buying a short sale from a bank doesn't have to be complicated process. If you are ready to look at local real estate listings, including short sales, go to RealtyNow.