What to know about buying a short sale

When a homeowner owes the bank more money on the house than the house is actually worth, they may become overwhelmed and want to sell the home. This situation is called a short sale, which has a few extra layers to it than any other sale. If you are a buyer looking at a home that is a short sale, there are a few things to be aware of.

First, you should know that the bank might take a long while to accept the deal. It can even take as long as nine months for them to approve the sale because the current owner must prove to the bank that they truly can’t pay the bills. However, it may be worth it for the buyer to wait the deal out. Just because the property is a short sale doesn’t mean that the home is in bad condition. You can get a good deal on a great home, you may just have to wait a while to get it. However, this isn’t always the case so you should be ready for repairs. An honest and qualified home inspector can give you an idea of the cost of any repairs you may have to face.

If there are two mortgages on the house, be prepared for one bank to approve the deal and the other bank to deny it. The other bank that initially denied it may come back and suddenly approve it, which could result in a closing just a few weeks away. It’s certainly not the easiest way to buy a home, but it may be worth it. Have the assistance of an experienced real estate attorney to help guide you through this process.

Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your estate or real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.