Potential homebuyers looking for a good deal in the market may be looking for distressed or short sale homes. Here are a few tips to remember when choosing short sale real estate properties.
As in any investment or real estate purchase, a buyer should not rush to purchase a home just because of its price. In the past year, many housing markets in the U.S. and in other parts of the world have experienced rising home prices and rent fees. The high cost of living in some areas may have also contributed to some homeowners' financial inability to continue paying monthly mortgage fees for home properties. When faced with the threat of foreclosure, some may opt to sell their homes for an amount that is lower than what the homeowner owes on mortgage, according to a Yahoo News report. This is also known as a "short sale" transaction.
The same report states that "to prevent foreclosure, the homeowner can make a request to his mortgage lender to sell the property as a short sale. Should the lender agree, a successful short sale can prevent them from incurring a total loss on the property."
For home buyers, there are a few tips to take note of when investing in a short sale real estate property. It is important to remember that real estate transactions for short sale properties can take longer than the usual home purchase process. It entails input from several parties such as the buyer, seller and the mortgage lender. All three parties should reach an agreement on the price.
It also involves a lot of documentation and review on the part of the lender. Given this scenario, hiring an expert would be a good move to help guide the home buyer through the complicated process, according to the same report.
It is also advisable to read the fine print of the agreement and take note of the contract clauses to avoid potential legal actions. Inspecting the short sale home property is also a standard requirement; however, potential home buyers should also consider the location of the property, its neighborhood and resale value.
Robert Jenson, owner and founder of the Las Vegas-based Jenson Group, told Bankrate that buying foreclosed properties is never easy. "Buying a foreclosure is definitely a bit of a grind. It's not easy. You're getting fantastic pricing, but sometimes it takes going through a lot of houses and writing a lot of offers to get the home you want."
