Buying a Short Sale
What is a short sale? A short sale means the seller’s lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.
Make Offers that will Close – Know the Issues
- Always use an experienced, licensed Realtor to handle the transaction on your behalf.
- Short sale homes are sold “AS-IS”, which means you are buying the home as it sits, the seller will not be responsible for any inspections or repairs.
- Ensure that you are preapproved by a lender for the loan, and submit the preapproval letter with the sales contract.
- Be extremely responsive to any requests made by the lender for additional documentation.
- Keep in mind that the lender is in charge!
- Once there is a written approval letter from the lender, they typically allow 30-45 days for closing, so you need to always be prepared and flexible in terms of your closing date.