What is a short sale buyer?
A short sale buyer is a person who is looking to land a deal on a home by buying it on a short sale. A short sale typically involves a home sale where the lender agrees to release its lien on a house for less than the full mortgage balance. The lender only agrees to release the lien because the homeowner is in a hardship situation and is unable to keep up the mortgage payments and/or write a check to sell the house. Since the lender has the final say in the short sale approval process, this can slow down the sales process from a 30 days closing to a 4 months or longer to close.
While many buyers might get excited about buying a house on a short sale. In reality, there are plenty of bargains out there that don’t require the wait time short sales do. The short sale buyer should weigh this wait time against what it costs to rent and/or lease break fees and whether it is worth it to buy a short sale as opposed to a regular home sale.
Also the short sale buyer should fully understand the risks associated with buying a short sale. The buyer needs to conduct due diligence on each short sale opportunity before proceeding with a contract. The steps for conducting due diligence on a short sale opportunity can be found on………..