buying a short sale, mortgage short sale


A lot of people have heard about short sales, but not everyone knows the steps of buying a short sale. When investors look into buying a short sale, they are looking for homes that owe a lot more on the mortgage than what the home is currently worth. Therefore, the first step in buying a short sale is finding a list of these types of homes and start calling owners making an offer on the home. After the owner of a mortgage short sale homes has agreed to sell the house at a certain price, the next step is to contact the homeowner’s lender and inform them of the offer. The lender’s mitigation center will peruse the short sale application and will determine whether the offer made is acceptable. This is very important to remember when buying a short sale—the bank has the last word on the deal. If the bank approves the deal then the investor gets the home at a much cheaper price, the bank doesn’t have to undergo the costs of foreclosure and homeowners get to save their credit. However, when buying a short sale, most of the time the first offer gets rejected and the process begins all over again. Therefore, when buying a short sale all the parties involved need to be time conscious since the longer it takes the closer we get to foreclosure.