When homes are listed as short sale homes they are usually the ones that is on the path to becoming a foreclosure home and the lender wants to sell the property, maybe even at a loss. This may sound like a good idea as you may be able to get an excellent home at a fraction of what it would cost if it was being sold on the regular market. As with anything, there are always pros and cons.
• The current lender and owner are both looking to make a quick deal because both parties involved are finding themselves in a difficult financial situate. There are many real estate agents that will list which homes have a short sale agreement so it is makes it easier on the buyers who are looking for a short-sale. Potential buyers can look through the list to see where the homes are located that are on the list and find one for the best deal.
• Such a house can cost a buyer ten to thirty percent less that the true market value of the home. It will let the buyer buy a larger home with less money.
• The pro of the legal process taking some time is that the mortgage company wants to move quickly in selling the home and will process the paperwork fast.
• The lender may take some time to respond to an offer on a short sale home. This happens more frequent when short sale homes have more than one mortgage on it. When this happens each of the lenders have to agree to the short sale offer. When short sale homes are selling at a huge discount the lender may be less inclined to sell. They can wait until it goes into foreclosure and receive the property so they can sell it for what they want. Doing it this way they can potentially avoid losing any money.
• The legal paper can be extensive on such types of homes, which can be both a pro and con. The con is that the home can be tangled in legal limbo so the time to process it and be ready to take possession can take some time. The homeowners that are living in the home may not be will to give the lender the information they need so this could extend the process of getting the home.
One of the big pluses of looking at short sale homes is that you can possibly stretch your home budget a little farther and get more house than you thought you could but then it can take some time before you can take possession of it and move in to the home.