A short sale is a great way to save a lot of money when you buy a house. Whether you're looking for a place to live or want to make a profit, follow these 10 simple steps. You can buy a house at a solid discount!
10 Simple Steps to Buying a Home in a Short Sale: A Great Way to Buy A Home for Less!
Identify Possible Short Sales
You can do this online or at the local courthouse. Look for houses where the seller owes as much as or more than the house is worth.
Visit the Property
You want to make sure you know what you're getting. Make estimates for repair costs (if repairs are necessary).
What's the property worth? Does it make sense to buy this property? If so, at what price?
Find Liens and Morgages
Make sure you know about all debts tied to the property. You'll inherit them if you buy it.
Figure Out Your Financing
You won't have time to apply for a loan once the short sale process starts. Short sales close quickly. Get your financing arranged ahead of time.
Contact the Lender
Speak with the loss mitigation department. Don't talk to the collections or customer service departments -- they're more interested in keeping the owner's existing mortgage alive.
Compete a Short Sale Application
Some lenders will make you fill out an application, some won't.
Assemble a Proposal
You must convince the lender to take a small loss now rather than a bigger loss later.
Be prepared for counter-offers from the lender. Walk away if they can't give you the deal you want.
Seal the Deal
Get everything in writing and officially recorded.