5 Mistakes A Buyer Cant Make In A Short Sale
Amongst today's volatile, short sale driven market there are 5 things you cant do while considering a short sale purchase:
1. Don't ignore property problems-nowadays foreclosure property owners aren't willing to leave nor are they willing to leave the property in good condition.
2. Don't skip the home inspection-make sure you set aside enough time to go along on your home inspection so that there are no suprises down the road.
3. Don't ignore legal and insurance information-most disclosure statements will indicate if a house is in a flood plain or has any unpermitted renovation. Due to bank owned properties being sold as is without disclosure, you need to do extra research on the home's status.
4. Don't expect the transaction to close quickly-short sale and foreclosure transactions won't necessarily close as quickly as it would for a traditional home. The short seller's lender must grant approval of either foreclosure terms or a short sale price which is less than the short seller owes. And most banks are overwhelmed with foreclosures and slow to respond.
5. Don't fall too hard for a bad home-unfortunately you can't assume you're getting a great deal in today's marketplace. Try to take the approach of an investor and ask yourself these three questions:
•Could you rent the property for as much as the mortgage payment?
•Will you be able to stand a 20% drop in value?
•How much money do you have to put into the property to make it habitable?
Contact Team SchuCo today to be referred to a Qualified Short Sale Specialist!
1. Don't ignore property problems-nowadays foreclosure property owners aren't willing to leave nor are they willing to leave the property in good condition.
2. Don't skip the home inspection-make sure you set aside enough time to go along on your home inspection so that there are no suprises down the road.
3. Don't ignore legal and insurance information-most disclosure statements will indicate if a house is in a flood plain or has any unpermitted renovation. Due to bank owned properties being sold as is without disclosure, you need to do extra research on the home's status.
4. Don't expect the transaction to close quickly-short sale and foreclosure transactions won't necessarily close as quickly as it would for a traditional home. The short seller's lender must grant approval of either foreclosure terms or a short sale price which is less than the short seller owes. And most banks are overwhelmed with foreclosures and slow to respond.
5. Don't fall too hard for a bad home-unfortunately you can't assume you're getting a great deal in today's marketplace. Try to take the approach of an investor and ask yourself these three questions:
•Could you rent the property for as much as the mortgage payment?
•Will you be able to stand a 20% drop in value?
•How much money do you have to put into the property to make it habitable?
Contact Team SchuCo today to be referred to a Qualified Short Sale Specialist!
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