The Benefits of Buying Homes via Short Sales
Buying a home is no simple task, regardless of location or price. Finding one that meets expectations or family needs is half the battle. The next most challenging part is working through the red tape of paperwork and financing. The benefits of buying homes via short sales help buyers better navigate the complexity of the matter and save money at the same time. As such, there’s no reason anyone looking for a home shouldn’t learn about and consider short sales as an option.
What Is a Short Sale?
People confuse the terms “short sale” versus “foreclosure.” Both types of sales arise from a situation in which the previous owner is dealing with financial difficulties. Short sales allow individuals to sell their homes for less than the remaining mortgage. The difference is often forgiven, depending on state laws. Unlike foreclosures, this releases the individual from the financial burden of the home with much fewer fiscal repercussions than a foreclosure typically results in.
How Short Sales Work
Essentially, a home is listed as a short sale, making it an excellent buying point for homeowners looking to save money or for home flippers looking to secure a profit. However, the originating lender of the mortgage must first approve the short sale before it can go through. Usually, documentation explaining why a short sale is advantageous is required, as the lender stands to potentially lose money. For this reason, a realtor or third-party negotiator is helpful to speed up the process and simplify the red tape of requirements.
Why Choose Short-Sale Homes
One of the benefits of buying homes via short sales is the fantastic value they often confer to the buyer. Short sales are excellent ways for investors to find and refurbish homes, bringing the homes’ values back up after the houses have potentially fallen into disarray. It also helps lenders put houses back into the hands of individuals capable of carrying the new mortgages. Besides this, short sales can also help individuals who have fallen on hard times turn around a significant mortgage debt and still walk away with something.