Buying Short Sale

Foreclosure rates remain high and account for one-third of all home sales. However, some homeowners have found relief in the form of short sales.

What is a Short Sale? A short sale is a sale where the home sells for less than the seller owes, and the lien holder agrees to accept a less then what the seller owes accepting the loss. By opting to sell at a short sale, the seller can avoid foreclosure, which can remain on their credit reports for 7 years.

What does buying a short sale home mean? First, a short sale can mean a bargain. That's what all buyers want to know, right!? If you are planning on searching out a short sale bargain it's important you understand what this sort of purchase will entail.


First, short sales will require you to be a patient buyer. The lien holder may take its time responding to the offer submitted. They may respond with a counter offer or full acceptance of the offer.

They are notorious for taking their time -- up to several months. There is legislation currently in Congress that would require lenders to answer within 45 days

Make sure your finances are in order and come to the table prequalified and approved. They love cash offers, which keep deals short and sweet.

The lein holders may through any contingencies out of the deal, so if you have to sell your home first, a short sale is probably not for you. Also, being a hard nose negotiating buyer will not will you the deal. The bank isn't emotionally attached to the property, they are just looking out for their bottom-line. 9 times out of 10, short sales will be sold as-is. Since the sellers are already in distress financially, they probably wont have any money to do any repairs and the lien holder will not.

Try not to get too attached to a short sale, only two out of five short sales are approved by lenders before they go into foreclosure.

For more information on short sales  CLICK HERE