There are many benefits of buying a short sale, including the ability to get a home at lower than market price. While this is the ultimate goal, there are many challenges that could arise along the way.
Before you get too excited about saving money, it is important to know what you are getting into. Buying a short sale is not the same as buying a property in a conventional manner.
Here are five questions to ask and answer before you consider this type of transaction:
-- Are you willing to sit around and wait for the bank to respond to your offer?
-- Are you okay with the idea that the lender may reject your offer, instead asking for more money?
-- What steps will you take if the deal falls apart?
-- Are you comfortable with the idea of continuing your search while the bank makes a decision on your offer?
-- What is the bottom line price you are wiling to pay for the home?
When you answer these types of questions, it is easier to understand the short sale process, where you stand, and what to expect as the process continues forward.
Every year, thousands of people purchase a short sale. If you are interested in doing so, learn more about the process and what to expect along the way.
If you ask and answer the right questions, you will never be caught off guard. You wont be surprised by anything that comes up. In the end, this knowledge will make the entire purchase process less stressful.
Source: Redfin, "40 Questions You Need to Ask When Considering a Short Sale," accessed Sep. 01, 2015