Some things you should know before you buy a short sale is that many homes that go through a pre-foreclosures that have a low asking price just may be attractive to many homebuyers. This being the case for starters you will have competition from other real estate investors with multiple offers. It will depend on the location of the property and the potential of the resale value.
Studies show that pre-foreclosure short sale homes can take months to close. So it would not be a good idea to put your hopes on the home and is recommended you have a backup offer on additional homes especially if you need to move in right away.
Since the lender is accepting a discounted payoff it really will depend on if the agreement between the seller and the mortgage company shows there is no default from the homeowner. As long as the borrower has not missed any payments.
As you wait for short sale approval you will want to search to see how much is owed on the property. It will be necessary for you to determine it there is two loans if so the first and second mortgage lenders may not agree on the price you are offering.
It will be to your best interest to hire a real estate agent who has experience with selling short sales. Having an experienced shortsale agent will make it easier for you to close the deal sooner because they are able to followup on necessary paperwork details reqired in a hardship letter.
Other things to consider is that the lender will want to see that you have a pre-approved loan and that the amount you are offering to buy the property for is comparable to the selling prices of other homes in the area.
Top things you should know before you buy a shortsale
1. Get an experienced Real Estate Agent that knows the short sale process.
2. Know the comparable sales of market value in the your surrounding area.
3. Find out how much is owed on the mortgage and how many loans are on the property.
4. Hire a short sale listing agent who can negotiate with the lender.
5. Make sure the seller provides the right documents to the listing agent for approval.
These are just a few of the things that are required when deciding to buy short sales. Do your research and be ready for along road ahead and it will take learning the fundamentals to be successful.