Short sales are not the same as the normal home sale process. Prior to viewing or buying a short sale, it is critical that you know what they are and what the process includes. The following is some general information on buying MA short sale homes.
Short Sale Introduction
Short sales describe homes where the sale price and expenses will not exceed what the seller would need to pay expenses, and the home owner has no financial resources to pay for the shortage. Costs involved in the sale may include the home loans on the property, real estate broker commissions, closing costs, and other related fees. The lender on the home will be “short” what is due/owed to them, which is where the term short sale comes from. The lenders currently holding the liens on the home for sale must all be willing to accept the lower payoff for it to go through. This is why it can get tricky. To request approval, sellers must submit their financial and personal information, explanation of hardship, and a contract from a buyer. Homes marketed as short sales can only be sold pending this approval, and there are no guarantees that it will be.
Short Sale Perks
The amount of short sale inventory listed has a lot to do with the real estate market. Sometimes, there might be an abundance of properties. Short sale properties are frequently an opportunity for buyers to receive a reduced price on homes. However, they may not work for all prospective buyers.
Disadvantages of Short Sales
Short Sale Timing
Home buyers must move forward with an offer to purchase without any promise that the purchase will actually be approved. It can also take a long time to receive word of the approval status (normally many months or even a year). Therefore, home buyers requiring to settle quickly should not consider short sales.
Repairs Necessary with Short Sales
Short sales usually require a lot of work. They are typically sold as-is since the owner has little money and the lenders are already receiving less than the balance owed. Home buyers should be able to handle work with their own money.
Buying MA Short Sale Homes
Short sales are not for everybody. People must be aware of the possible complications prior to making an offer on a short sale. For home buyers with moveable time frames and the ability to make renovations, it may be a great way to save money on a property. Consult with your real estate agent for additional facts on buying MA short sale homes in your area.