Buying a Short Sale Property
Frequently Asked Questions. Below are the questions, then click the link at the end of the questions for the answers.
- What is a short sale?
- Is the mortgage lender’s approval necessary in a short sale?
- Why do homeowners sell their homes through a short sale?
- Who benefits from a short sale and how do they benefit?
- What are the pitfalls of buying a short sale property?
- If the seller is selling a property for less than what they bought it for, does that mean the buyer instantly earns equity on the property?
- Why does the short sale purchase process usually take longer that a regular purchase?
- Can I complete a short sale purchase transaction on my own?
Short Sale Listings
- How can I find properties that are being sold on a short sale?
- What is the difference between a short sale listing that says “approved for short sale” and “third-party review required”?
Short Sale Approval
- What are the reasons the mortgage lender will not approve a short sale?
- What is a settlement statement?
Making an Offer for a Short Sale Property
- What information should I look up to help me decide if I should pursue a short sale purchase?
- Where do I find this information?
- Should my offer match the listed price?
- Should I start with a lowball offer in case bidding or negotiations occur?
- What should be included when an offer is submitted?
- What are the reasons the mortgage lender would reject an offer?
- How can I increase the chances of my offer being accepted?
- Should I start shopping for a lender even if the property I am interested in has not been approved for a short sale?
Other Impediments to a Short Sale
- Why does a short sale become more difficult when there are more lenders involved?
- Can the seller impede the short sale process?
Short Sale Contracts
- What is the short sale addendum?
- Can the home seller cancel the short sale contract?
To see the answers, please click HERE.