If you have ever wondered whether you should rent or buy a short sale home, there are several things that you may want to consider.
Buying a home through a short sale may require more expertise and patience than you have.
If you have ever wondered whether you should rent or buy a short sale home, there are several things that you may want to consider. Buying a home through a short sale may require more expertise and patience than you have.
You may be thinking that instead of continuing to rent, you can buy a short sale home because their prices are low. This may be a good option if you are a first-time home buyer or an investor. As an investor, you can fix-up these homes and try to sell them for a profit, or rent them.
You may buy a short sale from a homeowner who is trying to avoid foreclosure by selling his or her home for less than is owed on it. While the lender agrees to take a loss on the total mortgage due, it does not allow the house to sell for much below market value. Buying a short sale home can take time and may involve a lot of paperwork, yet it is often considered easier than buying a foreclosed home. The reason these sales can take so long is that once the seller accepts your offer, the lender must also accept your offer.
If you work with a real estate agent who specializes in short sales, he or she can help you negotiate with the seller and the lender to get the best deal that the lender will accept. Without an agent, buying a short sale may be too frustrating and take months.
When you are trying to decide whether you should rent or buy a short sale, buying typically has more advantages than disadvantages. You will need to be able to get a mortgage and make a down payment on the home. Plus, it is always advised that you have some money in savings when you become a homeowner. You will have maintenance costs and unexpected repairs even if the home is in great condition. If you want to look at real estate in your area, go to RealtyNow now for free listings.