If you are looking for a good deal on your home, then you might consider the option to buy a short sale. There are pros and cons to this type of real estate purchase though, so it is important that you understand the process before deciding whether this is the right approach for your family.
A short sale happens when a person is unable to pay the mortgage on the property, so the bank decides to discount the loan balance due. There are many factors that the bank needs to consider with this type of sale though, so the process is a little different than a standard real estate transaction.
Here are three surprising things that you need to understand before you buy a short sale in Atlanta or any other area:
1. Be Prepared to Wait
When you are buying a short sale, all of the communication happens with the loss mitigation department at the bank that owns the property. The bank will look at extenuating circumstances, which will determine whether or not the bank will accept the discount on the loan balance. Typically, the bank is looking at the current trends in the real estate market, as well as the financial situation of the buyer.
Often, the bank will choose a short sale in order to prevent the home from going into foreclosure, because they believe that it will result in a small financial loss. Because of the considerations that go into the decision making process, this transaction can take a long time. In many situations, you might be waiting for several months before it is time to close on the property. So, be patient.
2. Be Flexible
When buying a home, it makes sense that you want to find the perfect home of your dreams. But, in many situations, short sales will require a little bit of work to get them fixed up. You might need to be willing to compromise your goals in a few small ways in order to get the right deal.
Remember, if the home was in better shape, then it might have been out of your price range. Choosing a short sale means that you can afford a bigger home, but there is a possibility that you will spend some time and money on repair work before you move in.
3. Keep Looking
There is a possibility that you might not get the house that you want, so it doesn’t hurt to continue looking for other deals while you are waiting. Be open to other options, because you never know when another opportunity will come along. If you find something different, you can always pull your offer on the short sale.
At Duffy Realty of Atlanta, we want to help you find the home of your dreams. Whether you are looking at a short sale or another type of real estate purchase, we invite you to contact our office anytime so that we can help: (678) 318-1700