How do I Purchase a Short Sale?
Short sales are a real estate transaction in which a seller, oftentimes on the verge of foreclosure, sells his home for less than he owes on it. While it can be a lengthy process to wait for the lender's approval, short sales are a great way for buyers to purchase a home below market value.
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Search
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Search for a short sale property with the assistance of a real estate agent experienced in short sales. Most real estate listings will note if a property is a short sale.
Inspect
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Make an appointment to see each of the short sale homes that interest you. Compare the asking price to the amount of work the house may need to bring it up to a livable standard for you. This will help you determine if the house is a bargain.
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Offer
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Make an offer on the home you wish to purchase. Some lenders will have an application for those that wish to purchase a short sale property. This application can include a purchase agreement signed by you and the homeowner, a hardship letter from the homeowner and an appraisal letter. Negotiate a purchase price agreeable to both you and the homeowner's lender.
Closing
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Apply for a loan to purchase the home as you would with a typical real estate sales transaction. Close on the transaction and receive the keys to your property.
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References
- Photo Credit house image by Byron Moore from Fotolia.com
