Posted on: 27th Mar, 2010 11:30 pm
is it risky to buy a short sale property and is it ok to retail title company for the new sale(request buy counter offer).
Hi raimbowjm,
I won't say it would be risky to buy a short sale property. But you should check out the condition of the property before buying it. This will help you in knowing whether or not the property has any kind of defects. Apart from this, you should also check out if there are any liens placed on the property.
Thanks
I won't say it would be risky to buy a short sale property. But you should check out the condition of the property before buying it. This will help you in knowing whether or not the property has any kind of defects. Apart from this, you should also check out if there are any liens placed on the property.
Thanks
It is not risky to buy a short sale. You either get the property or you do not.
There can be a risk. If you are a first time home buyer, you must close by June 30, 2010. There is a risk the short sale may not be approved by that time. You could get the property but not get the tax credit.
There can be a risk. If you are a first time home buyer, you must close by June 30, 2010. There is a risk the short sale may not be approved by that time. You could get the property but not get the tax credit.
usually a short sale will mean that the current owner has found it unreasonable to continue making payments based mostly on financial issues. that leads me to wonder if that homeowner is also lacking the funds to do regular maintenance or to shore up parts of the home that need repair.
if looking at a property that's being offered as a short sale, i would absolutely recommend that an inspection be completed. these are voluntary things that buyers can take advantage of, but an inspector will find all the issues that may exist in a home.
most contracts are written subject to a satisfactory inspection, anyway; so a home that fails inspection won't get to the final stages of sale unless a buyer is willing to absorb the existing problems. and, of course, if there is damage, etc. an appraisal will also be reflective of that, and a lender will most definitely require repairs be completed before a closing could take place.
there's where your risk might come in. if the home is in good shape, then there's no inherent risk, other than what john pointed out about the timing of such transactions.
if looking at a property that's being offered as a short sale, i would absolutely recommend that an inspection be completed. these are voluntary things that buyers can take advantage of, but an inspector will find all the issues that may exist in a home.
most contracts are written subject to a satisfactory inspection, anyway; so a home that fails inspection won't get to the final stages of sale unless a buyer is willing to absorb the existing problems. and, of course, if there is damage, etc. an appraisal will also be reflective of that, and a lender will most definitely require repairs be completed before a closing could take place.
there's where your risk might come in. if the home is in good shape, then there's no inherent risk, other than what john pointed out about the timing of such transactions.
