Tips For Protecting Yourself If Buying A Short Sale Home
Buying a house that is listed for sale through a short sale is different than buying a house through the regular method, and there are some things you should understand before you go through with a deal like this. The main thing is to understand what a short sale is, the risks involved with the purchase, and the downsides this type of sale offers. As you proceed to purchase a house through a short sale, here are some tips to help you protect yourself in the deal.
Talk to a lender that understands short sales
When you purchase a short sale home, it means that you are buying a property for an amount that is less than the current balance the owner of the house owes on the mortgage, and you will need to understand this when making the purchase. In fact, you will need to find a lender willing to issue you a loan to buy a house through a short sale. While most lenders will do this, there may be some that will not. It's important to be upfront and honest with your lender when trying to purchase a house like this, simply so you and your lender can avoid surprises along the way.
Hire a lawyer and other professionals
Another good step to take is hiring a lawyer to assist you with this. The purpose of hiring a lawyer is for help researching the title to the home. Doing this is necessary to ensure that the owner actually owns the house and that there are no liens on the property. If the property has liens, you may inherit them if you go through with this purchase. Additionally, you may want to hire other types of professionals to assist you through this process, and this may include a home inspector, appraiser, and surveyor.
Know what to include in your purchase offer
Your lawyer can also be there to help you write up a good purchase offer for the property. When buying a short sale home, the offer you write up should not include a lot of contingencies, if you really want to buy the house. Contingencies do not mix well with short sale homes, and they may even cause the deal to fall through.
You might find a great home offered through a short sale, and this can be a good idea if you fully understand what to expect. If you would like more information about short sale homes, contact areal estate agent.
