How to Purchase a Short Sale House
When a homeowner has fallen behind on his mortgage payments and is unable to keep his home, he can negotiate with the bank to sell his property for less than the mortgage balance and avoid foreclosure. This is called a short sale.
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Significance
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Lenders require real estate agent participation on both sides of a short sale transaction. Buyers can select the agent who has the listing, or they can hire their own representation. The agent will negotiate a short sale offer with the lender on behalf of a buyer. The seller is minimally involved in the process.
Function
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Short sale transactions can be complicated. When researching short sale properties, the buyer must be prepared to research any liens on a property that need to be paid before ownership can be transferred. This can be accomplished with the assistance of a escrow service that can be recommended by the real estate agent.
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Time Frame
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Response times on short sales can be a few days or a few weeks in length. Short sale transactions are notoriously long to negotiate and can take several months to close.
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References
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