Audio file
How to Find the Best Short Sale Deals
Are you on the hunt for a great deal on your next home? If so, short sales might be just what you're looking for. While the process of buying a short sale property can be a bit more complex than a traditional home purchase, the potential savings make it well worth considering. In this article, we'll guide you through the ins and outs of finding the best short sale deals in your area.
What is a Short Sale?
First things first, let's define what a short sale is. In simple terms, a short sale happens when a homeowner sells their property for less than the outstanding mortgage balance. This typically occurs when the owner is facing financial hardship and can no longer afford their mortgage payments. The lender agrees to accept a lower payoff amount, allowing the owner to sell the property and avoid foreclosure.
The Short Sale Process
1. The homeowner contacts their lender to discuss the possibility of a short sale.
2. The lender reviews the homeowner's financial situation and decides whether to approve the short sale.
3. If approved, the homeowner lists the property for sale, typically with the help of a real estate agent or real estate attorney experienced in short sales.
4. Potential buyers submit offers on the property.
5. The seller accepts an offer and sends it to the lender for approval.
6. The lender reviews the offer and decides whether to accept it. This can take several weeks or even months.
7. If the lender approves the offer, the sale moves forward, and the buyer purchases the property.
Where to Look for Short Sales
Now that you know what a short sale is, where can you find these deals? Here are a few places to start your search:
1. MLS Listings:
Work with a real estate agent who has experience with short sales. They can set up a search in the Multiple Listing Service (MLS) specifically for short sale properties.
2. Online Real Estate Websites:
Popular sites like Zillow, Redfin, and Realtor.com often have filters that allow you to search for short sales in your desired area.
3. Bank Websites:
Some banks have dedicated pages on their websites listing their short sale properties. Check with major lenders in your area to see if they have any listings available.
4. Auction Sites:
Websites like Auction.com and Hubzu.com often feature short sale properties along with foreclosures and REO (real estate owned) homes.
Due Diligence is Key
Once you've found a potential short sale property, it's crucial to do your due diligence. Here are a few key steps:
1. Work with an experienced agent or attorney:
Short sales can be complex, so it's essential to have a real estate agent who knows the process inside and out.
2. Get a home inspection:
Even though you're getting a deal, you don't want to end up with a money pit. A thorough home inspection can uncover any major issues before you commit to the purchase.
3. Review the seller's hardship package:
The seller must submit a hardship package to their lender for approval. Review this package with your agent to ensure everything is in order.
4. Be prepared to wait:
Short sales can take longer to close than traditional sales, as the lender must approve the deal. Patience is key.
While finding and buying a short sale property takes some extra legwork, the potential savings can be significant. By understanding the process and working with an experienced real estate professional, you can navigate the short sale market with confidence and find the home of your dreams at a price you can afford.
