Should I Consider A Short Sale When Looking For A New Home?

When you are considering buying a home, you may be looking at several different factors when choosing the perfect home. It is important to find a home for sale that you can afford that is nice and in a good neighborhood. If you are struggling to find a home that you love and can afford, you may want to consider a short sale. It can reduce the price of home that is for sale and end up saving you money.

What Is a Short Sale?

A short sale is when the owner of the home sells it for less than they currently owe on the mortgage. The bank has to approve the sell, which means that it can take longer for the sale of the home to go through. Homeowners may do this if they find they cannot afford the home and the housing prices or value of the home has dropped due to market conditions. It does not mean that the home is in poor condition or that there are any issues with the home.

How Does the Short Sale Work?

The process can take longer than purchasing an additional home. You will make your offer, and the agent and seller will take that offer to their bank to see if the bank will approve it. There is a lot of paper work involved. Fox Business recommends using an experienced agent to do a short sale. An agent that understands the process can speed it up and help you come up with an offer that is less likely to be rejected based on current market conditions.

How Is a Short Sale Different From a Foreclosure?

The bank already owns homes that are in foreclosure. You can get a good deal on a home that is in foreclosure, but often these homes have been stripped of valuables like the wiring or plumbing. You may need to allow extra money to have the repair work done before the home is livable. With most short sales, the owner is still living there and taking care of the home. They are trying to prevent a foreclosure, and so the home may be in better condition.

Is a Short Sale Right for Me?

If you have time before you need to move, and you are willing to wait through a lengthy approval process, a short sale can give you a more affordable option when you want to buy a home. However, if you have a set moving date and you think the stress of waiting to hear back will bother you, you may be better off buying a home that is not a short sale. Do not necessarily avoid homes that are short sales; you may end up finding your perfect home.