Many buyers are unfamiliar with the short sale process — but if you’re like most people, you know that a short sale can be a great deal.
So what is a short sale, and could it be the right type of home for you to buy?
What is a Short Sale?
The term short sale refers to the bank getting shortchanged on the deal. In a short sale, the owner sells the house for less than what he or she still owes the lender.
This can often happen when property values decline while people still have mortgages on their homes.
In order to proceed with a short sale, the seller must have the lender’s permission. That’s because the lender is the one that’s going to be losing money.
For many sellers, it’s a great idea. They can avoid foreclosure or filing bankruptcy when a buyer picks up the house.
It’s also helpful to banks. They’d often rather accept less money for the home than to get nothing at all.
Are Short Sales Great Deals?
As with any home, one being sold in a short sale needs to be inspected and still must meet all the local, state and federal codes and regulations.
Before you begin looking at short sale properties, know that:
- A home that’s selling in a short sale may not have been properly maintained. In many cases, homeowners are simply trying to make payments; they may neglect routine maintenance in favor of making their mortgage payments.
- Short sales can be complicated transactions, and they can take longer than more traditional sales.
- Most short sales are offered “as-is,” which means you’ll have to make any necessary repairs, improvements or upgrades.
- You may have to pay for inspections and other things the lender, who is actually the seller, may require.
Are You Searching for Homes in Middle Tennessee?
If you’re searching for a home in or around Nashville, we can help.
Call us at 615-425-8049 or get in touch with us online. We’ll streamline your home search and show you all the properties you’re interested in seeing.