What's a Short Sale?
Homebuyers these days will come across properties classified as a short sale more often than not. This is when a homeowner attempts to sell his home for less with lender approval rather than the lender taking it back through foreclosure proceedings. By doing so the homeowner could salvage his credit rating and rid himself of the encumbrance of a huge mortgage.
The seller sets the price either by himself or with the assistance of a real estate agent. Offers submitted to the lender are subject to lender approval. It is easier to work this through if there is a single lender involved. It becomes difficult and very tedious working with several lenders and sometimes with the insurer. Depending how many offers have been submitted and rejected, the potential buyer needs a lot of patience. Lowball offers can be rejected or receive slow recognition.
Homes are usually “sold as is” since there are almost no funds to make repairs. The buyer should keep this in mind when submitting an offer. One other important factor, the buyer must be prepared to close on time. Meaning that the buyer must have his loan and financing ready to go.