As the buyer of a home, you want to get the best deal possible and a feeling that you will be making a good investment for your future. So when you come across a short sale home, you might choose to see it as a great opportunity to get more for your dollar. But there are certain things to consider before impulse purchasing such an important asset. If you think the price is too good to be true, then it is important to research the facts and consider the implications.
What are short sales?
When a person is having a difficultly meeting their mortgage repayments, they might be desperate to sell their property so that they can pay off their mortgage and get some financial relief. But this does not mean that the seller and lender do not know what their property is really worth. Furthermore, the lender may not accept your offer, just because the seller does.
Do your research
You should always look into public records before making any offer on a home. This can help you second guess the situation of the seller, and watch out for any red flags, for example if the seller has more than one loan. If the seller has two or more loans, it can mean that it may become very difficult for the home to have a successful short sale.
If you are considering making an offer on a short sale property, it is important to consider hiring an experienced agent and looking into all of the possible legal implications.
Source: Findlaw, "Before buying a short sale home," accessed Oct. 20, 2017