If you’re in the market for a new home, you may have heard of buying a short-sale home. However, it’s important to get some information before you forge ahead with your purchase. A reliable realtor in Doylestown or wherever you’re conducting your home search will help you through the process. Read on to learn what a short-sale home is and how buying one can affect you.
What Is a Short-Sale Home?
If a homeowner faces significant financial hardship and falls behind on their mortgage payments, they may be able to make arrangements with their lender or lenders to short-sell their home. In this situation, the lender will accept payment for the home that is less than the remaining mortgage balance. Many times with this arrangement, the lender will forgive the remaining difference for the current homeowner. However, they may require the homeowner to make arrangements to pay the remaining debt.
In many cases, a short sale is the better option for homeowners who are behind on mortgage payments. The foreclosure alternative is much more damaging to their credit and harder to recover from. Additionally, following a short sale, they may qualify sooner for another mortgage, getting back onto their feet more quickly than if they foreclosed.
How Does A Short-Sale Home Affect The Buyer?
When you purchase a short-sale home, it’s not the same as going through a standard buying process. Under normal circumstances, if things with the home aren’t up to par, you can request contingencies. That’s not the case with a short-sale home–you’re getting it as is. You could end up with a fixer-upper that requires a lot of work.
In addition, the lenders may require extra closing fees that would normally not be the buyer’s responsibility. However, due to the financial situation of the seller, the responsibility will be placed on your shoulders.
Because of the steps involved with getting approval and moving through the red tape that’s not part of a standard purchase, buying a short-sale home can take a lot longer than you would expect. Sometimes it can be just a few weeks, other times it can be several months. It all depends on how quickly the seller gets through their part of the approval process.
When You’re Ready To Buy Your New Home, Turn to the Best Realtors in the Area
Don’t try to navigate the real estate world alone. No matter what type of home you’re interested in, rely on the best. Paul Gunter is one of the top realtors in Bucks County and provides excellent service and exceptional knowledge of the area and industry. Reach out today to learn more.