Buying Short Sale Homes: Advantages And Disadvantages Of This Real Estate Transaction

Buying short sold homes is a popular strategy in the real estate industry primarily because there is a higher chance a buyer can get a really good deal on a property. However, there may be some pitfalls if you are a stranger to the said process. Because for starters, buying short sale homes doesn't exactly mean taking a short period of time. In fact, this transaction can take longer compared to a regular home sale as this could require more legal steps and more bank approvals.

Short Sale Homes

Short sale transactions happen when a home gets sold for less than what the home still owes to the mortgage lender, and the seller isn't capable of making up for the said difference. During these instances, the homeowner typically gets a short sale agreement with his lender so as to avoid foreclosing the property.

Short sale means losing money, so if you are involved in a short sale transaction in any way, be prepared to hear lots of haggling. Moreover, to complicate things even more, there are short sale homes that has two lenders. So if you're buying a short sold home, you may need to deal with two lenders. Keep in mind that these two lenders will try their best to lose as little money as they can.

Nonetheless, this doesn't mean that you should stay away from buying short sale homes, since this transaction also comes with its own perks. The only thing that is being implied here is that, you should be aware of the complications this real estate transaction comes with before you begin being a part of it.

As a summary, you may be in for a long ride if the listing agent isn't an expert in this process and/or the bank in question isn't open for a deal. However, if you are able to get through the complex parts, you will enjoy the privilege of buying a home for less that what it is worth. Now, that's something to look forward to.