Tuesday, December 11, 2018 / by Trish Ford
Finding a home listed below market value is always a buyer's dream, but what if you find a property that listed well below the rest of the homes in the neighborhood because it is listed as a short sale by the bank? The truth is, finding these properties can be like finding a golden ticket in your chocolate bar. Take a look at some of the advantages of buying short sale properties as a buyer.
Buy a Better Home at a Lower Cost
For a lender, going through the foreclosure process to reclaim a property and sell it can be a costly endeavor. The mortgage lender will have to pay for legal fees associated with foreclosure, such as costs relative to getting the current resident out of the house and maintenance costs that can come along with maintaining a property until it sells. To get out of these expenses, some mortgage holders will agree to do a short sale, which basically means they drop the home below market value so it sells quickly and they can quickly recoup the majority of their money.
Get a Chance at Attractive Financing Terms
Along with banks being willing to sell the home below market value during a short sale, many will also offer special financing terms to interested buyers to sweeten the deal. The faster the home sells, the less money will be lost while the property sits empty. You may come across a highly motivated mortgage holder who just happens to want to sell you the property with flexible payment terms or a lower-than-usual interest rate.
Skip Problems with Angry Previous Homeowners
When a house is foreclosed on, it can be a highly emotional experience for the current homeowner involved, understandably. Unfortunately, when the bank evicts the prior owner, it can create some drama. There may be property damages to contend with or a stubborn prior owner who is refusing to leave. With a short sale, there are just as many advantages for the homeowner losing the home as there are for the lender. Therefore, you will be less likely to be stuck dealing with the repercussions of someone being evicted from the property like you would if you were buying a foreclosed property.