Buying a short sale home

Answer

Purchasing a short sale home isn’t the same as buying a foreclosed property, since the owner is actually selling the home to avoid foreclosure. It takes longer than a conventional purchase, because the owner’s lender must approve the sale.

Not good for everyone

Since the lender will receive less than mortgage balance, they will investigate the circumstances to determine whether or not the owner truly cannot make mortgage payments. While buying a short sale has advantages for the purchaser, it’s not a good idea for anyone who has to close and move in by a specific date.

Pay closing costs

Since the house is sold “as-is,” buyers must pay virtually all of the closing costs, some of which are shouldered by the seller in a traditional sale. Make the situation easier by looking for short sales advertised as “approved.” This means the owner’s lender has already done its due diligence and concluded the owner cannot pay the mortgage

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