mortgage short sale, buying a short sale


A lot of people have heard about short sale, but are confused about what qualifies a home to be a mortgage short sale home. Basically, a mortgage short sale home is a home that owes a lot more than what the house is worth and the owners cannot afford to make the payments. They are referred to as mortgage short sale homes, because an investor can buy the home for a price lower than the price of the mortgage or “shorter” than the price of the mortgage. The process of buying a mortgage short sale home begins with the initial offer made by an investor to the homeowner. The offer can be approved or rejected although most of the time it is accepted, since homeowners are trying to start the process as soon as possible. Homeowners will then contact their lender and make them aware of their offer on their home. It is at this point that the process tends to slow down to a crawl, since the lender needs to examine whether this is a legitimate mortgage short sale home. The lender will do some number crunching and speculation to determine this. Once approved the mortgage short sale home, ceases to just that and ownership is passed to the investor. Buying a short sale is not tough, but it can be tricky and slow as molasses.