Buying A Short Sale Part One: 5 Reasons Not To Buy A Short Sale
Of course buying a short sale is going to depend on the type of house and the seller and of course the bank. There is a lot of information about whether people should buy a short sale or not. All the information that you find online is going to be different and only you are going to be able to tell whether it is a great deal or not.
That is the main reason that I decided to write this post and list 5 reasons not to buy a short sale. Now I am not against using this method to get a home; however I did not want to be biased and tell you the reader that you should go out and find one. I want to provide all the information that will help you decide whether it is the right process for you or not.
5 Reasons Not To Buy A Short Sale:
1. Seller Paid Too Much: We all know that a short sale is nothing more than the owner not being able to meet their mortgage payments. When you do a short sale then you step in and take the mortgage off of their hands; while hoping to get the best deal from the bank. Just because you see that the property is listed below market value does not mean that you are getting the best deal possible; it just means that home values have dropped.
2. Real Estate Agent: Regardless of how much you want to believe that your real estate agent is going to be 100% honest with you; they are in this business to make a profit. If you have no idea what you are doing the only people who are going to make a profit from this deal is the real estate agent and the bank.
3. Strict Qualifications: No matter what you choose to believe that bank is not waiting for someone to come offer a short sale deal just to get the property off of their hands. Just like you they want to make as much profit off of that home. So unless you know what you are doing; you could end up losing money.
4. As Is Home: This means that if you do not know how to properly inspect a home and if it has more damage than you were aware of; you get all the headaches that come with the home.
5. Seller Cooperation: When the owner of the home realizes that they are going to lose their home; they may not be willing to cooperate with you. In fact it may be difficult to get them out of the home when you complete the deal.
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