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The biggest benefit to buying a short sale home is the chance of finding a great deal. And unlike with a foreclosure, a short sale home is likely to be in good condition. Often, the current owner will be still in residence and keeping up basic maintenance. A foreclosure, by contrast, might be in disrepair.
This is something that the buyer should discuss with their real estate agent. It's best to strike a balance between what's a good deal for you and what's reasonable for the lender. A price that's 5% to 10% below market value is typically a good number to put on the table.
Here's an overview on buying a short sale home: The lender must agree. First, the lender must agree to the short sale. ... The seller must prove they have no other option. The seller needs to show some sort of hardship. ... A home's price must be in line with market value. ... Short sales need to be disclosed.
Here's an overview on buying a short sale home: The lender must agree. First, the lender must agree to the short sale. ... The seller must prove they have no other option. The seller needs to show some sort of hardship. ... A home's price must be in line with market value. ... Short sales need to be disclosed.
7 Disadvantages of Buying a Short Sale Long Process. ... Subject to the Mortgage Lender's Approval. ... Lender Could Counter, Reject or Not Respond. ... Opportunity Cost. ... Property 'As Is' ... Is the Seller Approved? ... Lenders Prefer All Cash or Large Down Payments.

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Short sales are voluntary actions by the homeowner; they require approval from the lender. Foreclosures are involuntary for the homeowner; the lender takes legal action to take control of and sell the property. Homeowners who use short sales are responsible for any deficiencies payable to the lender.
A "deed in lieu" is a transaction in which the homeowner voluntarily transfers title to the property to the bank in exchange for releasing the mortgage (or deed of trust) securing the loan. Unlike with a short sale, one benefit to a deed in lieu is that you don't have to take responsibility for selling your house.
7 Disadvantages of Buying a Short Sale Long Process. ... Subject to the Mortgage Lender's Approval. ... Lender Could Counter, Reject or Not Respond. ... Opportunity Cost. ... Property 'As Is' ... Is the Seller Approved? ... Lenders Prefer All Cash or Large Down Payments.
You will need to include information about all appliances in the home, including which are included in the sale as well as whether they are operational. You will also need to disclose any room additions, damage, or neighborhood noise problems.
Here's an overview on buying a short sale home: The lender must agree. First, the lender must agree to the short sale. ... The seller must prove they have no other option. The seller needs to show some sort of hardship. ... A home's price must be in line with market value. ... Short sales need to be disclosed.

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