Risks When Buying a Short-Sale Home

If you are looking to buy a home at a significant reduction in price, you might have heard about pursuing a short sale. A short sale can occur when a homeowner can no longer pay the mortgage and wants to sell the property for less than the amount currently owed on the loan. This tactic has the potential to save you money, but it also has its risks. Here are few you should look out for:

Time — The short-sale process generally takes longer than the regular closing process. The seller’s mortgage lender needs to approve the sale, which typically takes about two months. If there are other liens on the house (such as a second mortgage or home-equity line of credit), those lenders must approve it as well. Sometimes final approval can take six months or more.

Deal falls through — Sometimes the lender’s approval might come with conditions that the seller is unable or unwilling to meet, and they will back out of the deal, even after months of time already invested.

Extra costs — Lenders rarely agree to pay for extras that a seller would typically take care of (such as inspections and repairs), so your closing costs could be higher.

Deferred maintenance — Cash-strapped sellers may have let maintenance and repairs go by the wayside, resulting in a lot of fixing-up that the buyer would be responsible for.

About Adrian4Homes

If you are looking for a top Agent in South Florida, look no further. Adrian is a top producing real estate agent and an expert in the South Florida Market. The Adrian4Homes Team specializes in assisting buyers and sellers and would love to provide you the expert advice necessary to make an informed decision. The team is focused on providing outstanding customer satisfaction as compared to no other. Whether you are buying or selling a home the Adrian4Homes team is here for you. Staying on top of the ever-changing Real Estate market, Adrian has many years of hands-on experience, not only as a Top Realtor in South Flordia, but as a Real Estate investor himself. When Adrian gives advice, he gives advice he would like to receive. Rest assured that when Adrian is by your side you are tapping into his experience as a Realtor AND Investor, which results in a win/win for you. Looking to buy or sell Real Estate in Florida or know anybody who is? Call Adrian Valdes and Start Packing!!!
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