If you are a prospective home buyer, then the homes which are in short sale are good options for you. Earlier the process of short selling was very time consuming and lengthy. Now, the situation has changed a lot and qualified home buyers are now able to purchase these distressed houses with more ease.
In case of short sale, mortgage lender allows a home buyer to sell his/her house at a price which is less than he/she owes on the property. The reason behind a lender to agree with such an offer is that the loss to him/her is less than in case of foreclosure. Again, for you, the buyer of the house, it is a better choice than purchasing a foreclosed house. This is so because in case of foreclosure, the house is repossessed and sometimes it remains vacant for a long time. This requires a lot of repairing works to be done in the house. Anyways, before purchasing a house in short sale, you have to resort to some smart moves so as to clinch the deal.
1. Project yourself as a good candidate
Here you have to project yourself before the lender in such a way that the lender thinks that you are a good candidate. You need to make such an offer that the lender can’t refuse outrightly. In order to augment your chance to get approved for the deal you need to ensure certain things, which are listed below.
• You are able to make adequate down payment.
• You have already obtained the preapproval for a home loan.
• You don’t need to place any contingencies on the agreement using the proceeds received from selling your current home to finance this purchase.
2. Find an agent with experience in such type of mortgages
You need to find out a real estate agent who is qualified and experienced enough to handle this type of complicated mortgage deal. A qualified agent can spot the properties in which your bid is likely to be accepted. In other words, he/she can help you avoid those deals in which your bid for the property is likely to be rejected by the lender.
3. Wait for some time to get the nod
Earlier the short sale process was too time-consuming. But, in order to quicken the process, new guidelines have been passed by the federal authorities in June, 2012. As per the new guidelines, your bid offer has to be responded within 1 month and final decision has to be delivered within 2 months. Earlier you had to wait for much more than 2 months to get the final approval.
4. Make the right offer
Making the right offer is the key to grab the deal. An experienced broker can help you a lot in this regard. From the listed price of the property, you can have an idea on the tentative price that the lender will agree to accept. Here the real estate agent can help you a lot to make the right bid.
These tips will surely help you a lot in purchasing a short sale home.