Buying a short sale is different than buying a regular home for sale on the market. There is a complex negotiating component with the bank that needs to be addressed and it take s time. If you have a little bit of an understanding of buying a short sale it can make the purchase process a little easier. Following is a post from another blog that I maintain.
Buying a Short Sale
Definition of a short sale: A short sale of a property is where a homeowner must sell their home due to a hardship
Many times their can be more than one lien holder, there can be a first mortgage, a second mortgage, a home equity lien of credit and /or private mortgage insurance. All of these parties must come to terms on the short sale. Because many of these home owner are under financial distress there can also be tax liens, municipal liens and so on. Provisions need to be made for all of these entities to be satisfied.
Why would a bank want to do a short sale? In many cases a short sale is cheaper for the bank to allow than going into the foreclosure process. They get the house sold with out ever taking possession of the home. A short sale can save a bank $20-50,000. Read more on buying a short sale.....
