Is Buying a Short Sale Right for me?

Buyer

The casualties of a tough housing market and a struggling economy are all around us. Foreclosures in Florida are at an all-time high, and many homeowners are struggling to get out from under bad mortgages that they just can’t pay. Because of this, many homeowners are seeking to sell their home as a short sale instead of going through the foreclosure process.

What is a Short Sale?

A short sale is an alternative to foreclosure. In a short sale, the homeowners sell the home for what they can, and the bank takes a loss on the Jacksonville home. As a result, the homeowners are spared the foreclosure process, which saves their credit and allows them to move on.

Although the lender often accepts less than what is owed on the mortgage in a short sale, it often benefits them, as well, as they can eliminate the costly and time consuming foreclosure process.

How Can a Short Sale Benefit me?

A short sale can benefit Jacksonville homebuyers, as they can often purchase a home for less than others in the neighborhood. Don’t expect a steal, though, as lenders are still out to recover what they can on the original mortgage.

Buying a short sale is a lot like a standard transaction; however, you are essentially submitting an offer to the lender, instead of the homeowner. In addition, an offer accepted by a lender must go through many channels, which may make the process of making an offer a longer one.

What do I Need to Know before Making an Offer on a Short Sale?

There are certain legal circumstances involved with purchasing a short sale. Therefore, it is in your best interest to find a good real estate lawyer and accountant, both of which can guide you on the tax and legal ramifications involved with purchasing a short sale.

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