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You hear a lot these days about big discounts on "Short Sales"
and distressed properties in real estate.
Make sure that you understand everything that's involved
in these complicated transactions
before you get involved
with this information from the loan professionals
at 1st Mariner Mortgage!
In the current housing market,
a lot of people are talking about "short sales"
where a home sells for less than
is owed on the seller's mortgage.
While it's possible to get a good deal on a short sale,
it's a drawn-out, complicated process
with a lot of pitfalls so be prepared.
Most important,
don't try to negotiate a short sale on your own.
Work with a real estate professional
who has extensive training and experience
specifically in short sales.
Here are some other potential pitfalls
that you may need to be aware of:
• Some lenders will agree to assist with
a buyer's closing costs, but others won't.
• You may have to pay unexpected expenses
like unpaid homeowners association dues,
liens, transfer fees,
and possibly even the seller's back taxes.
• Short-sale homes are almost always sold "as is"
so you will have to make any needed repairs.
Make sure you get a thorough inspection by a professional
before you buy.
• Beware of a clause that asks for "liquidated damages."
This could put you on the hook for a daily penalty
if you cannot close in a certain period
after receiving the bank's approval.
• Make sure you buy title insurance.
It's always important, but in a short sale it's critical.
• Finally, get a home warranty
to avoid additional expenses after the sale.
As you can see, short sales are not easy.
So make sure the savings are worth the risk
and the potential problems before you commit.