A short sale is different from a foreclosure, which is when the seller's lender has taken the title of the home and is selling it directly. Home owners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Answering thesе questions will help you determine if a short sale is a good fit for you.
❔ Are you very patient?
Even after you come to agreement with the seller to buу a short-sale pрroperty, the seller's lender (or lenders, if there is more than one mortgage) still has to approve the sale.
❔ Is your financing in order?
If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
❔ Do you have any contingencies?
Lenders like flexible terms. If you must sell a home before you can close, or you need to be in your nеw home by a certain time, a short sale may not be for you.
❔ Can you take rejection?
Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which maу not be acceptable to some financially strapped sellers. Lenders also can change any of the terms of the contract that you've already negotiated, which may not be agreeable to you.