If you’re considering purchasing a short sale, there are several things you need to know. First, you must understand just what a short sale is and how it works. Next, you’ll want to be aware of some key points that will make the overall process go more smoothly. After reading this, check out the website of Dean Graziosi to learn more.
You are probably familiar with foreclosures and what they are, but understanding short sales is a whole other story. When a lender agrees to accept the payoff amount for a mortgage that equates to less than what the homeowner actually owes, a short sale occurs. The homeowner who is obviously in financial distress really needs to get rid of the home before literally losing everything, and sometimes a short sale is the best way to make this happen.
In the case of a short sale, the lender will actually forgive the remaining balance owed on the loan in favor of solving the problem at hand. This doesn’t mean everyone wins.
A short sale can be good for the seller who really needs to get rid of the property quickly, while it isn’t necessarily so good for the buyer or lender. According to a post written by Dean Graziosi, the process of buying a short sale home can be “more trouble than pursuing a traditional purchase.” While selling your home in this manner can damage your credit, it isn’t as bad as going through a foreclosure. If you’re buying one, however, there are some important aspects you should definitely consider.
Sure you will be purchasing the property at a reduced price, but odds are your new acquisition will come with more than a few problems. Perhaps the seller was unable to pay for updates on the home and there’s a lot of work to be done. The lender will relish the thought of being paid out, so you may even receive financing terms that will work very much in your favor. While this won’t always be the case, it’s worth checking into when considering the purchase of a short sale.
The lender will take a loss as well, but it won’t be as bad as the hit from a foreclosure. This may make the lender more eager to work with you, the buyer in an effort to make a successful sale that will benefit all parties involved.
Sometimes, sellers who own foreclosed properties will need to be evicted before giving up their homes. You won’t experience this in the case of a short sale because the seller is seeking to get rid of the property before a foreclosure can even occur. This makes taking possession of your new home happen much more quickly and easily.
You can find additional information about purchasing a short sale and a whole lot more from Dean Graziosi on his various sites. Also be sure to check out his blog for useful real estate tips.