Purchasing a short sale in Palm Beach Florida.

What to consider when purchasing a short sale

Short sales are very common these days. In a time of economic recession, where people simply are not making enough money to afford their homes, short sales can provide financial relief to many families. Short sales also make it possible for people to buy homes who might not otherwise qualify to purchase a home in their ideal area.

A short sale is a sale of a home where the price is below what is owed on the loan of the home. In order for a short sale to occur, the bank holding the mortgage must agree. This becomes even more complicated when there are multiple mortgages on a home, as the lenders must all agree to the short sale. A buyer of a home, in a short sale, must demonstrate access to the funds that will pay for the home. The seller generally has to pay the costs, or the bank will do so. Banks are taking less than what is owed on the property, a loss, on a short sale, and so they can take a while to consider a short sale.

If you are purchasing a home on a short sale, be prepared for negotiations and a lengthy process. Banks may take your offer right away, or they may come back with a counter offer. Banks may refuse your short sale request. You do not know what is going to happen with a short sale. So while short sales are great in terms of price and opportunity, there is more uncertainty in them than in a regular home sale.

A short sale results in you obtaining the property “as is.” This means if there was some damage done, either while the property was vacant or while the owners were moving out, you have to fix the damage. It also means that everything on the property; the walls, the roof, the air conditioning unit – all come as is.  You need to make sure to have a good inspection of the home before you purchase it so that you know what other costs might be associated with the home. A local real estate agent can help you find a reliable and trustworthy inspector in your area.

Short sales come with benefits. You can get more house for less money. You get a better neighborhood than you might otherwise have been able to afford. Short sales can be great deals, just go into them expecting that it might take a while for the short sale to be completed. 

Are you in the market for a short sale in the Palm Beach area? Contact Anton Seiss for more information at 305-331-3065. 

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