Short sales can also provide good opportunities to obtain a below market property. These homes are typically in better condition than foreclosures because the home is likely to still be occupied. Short sales will typically take a longer to get the buyers’ offer approved than when buying a foreclosure or a non-distressed home.
During this process, the lender needs to verify that the seller is truly in financial hardship before they decide to accept less than the balance due on the loan. The bank will want to minimize losses and require a second opinion market analysis in addition to a buyer’s appraisal. It’s important to know how many liens are on the home and what is owed prior to considering a property being sold as a short sale. There is a lot to the verification process which tends to cause a delay within the process. It is not unusual to be in escrow for a few weeks to find out the bank will not accept a buyer’s offer or would want to re-negotiate to minimize losses. At times, the bank may select to foreclose after all.
For more information, tips, tricks, questions, or to see what the best option for you between foreclosure and short sale purchases contact Cesi Pagano and Associates. Schedule a free consolation.