What Is A Short Sale and Is It A Good Idea As A Buyer?

If a homeowner is behind on their mortgage payments, owes more money than the property’s current value, and is in danger of foreclosure, a lender may agree to terms of a short sale. Short sales are neither short nor simple endeavors. Because multiple parties are involved, most buyers prefer to steer clear of short sale properties, but if you have the time to wait, you might be able to snag your dream home for a much better price. Step one: Talk to a few buyer's agents! Tell us a little bit about your plans (where you’re looking to buy and when you want to make a purchase) and we’ll connect you with top-rated buyer’s agents in your area. It takes only a few minutes, and it’s free. How do short sales work? First, it is important to understand the distinction between a short sale and a foreclosure property, so you know exactly what you’re getting into. A short sale is initiated by the seller to unload their property before foreclosure, helping prevent an enormous foreclosure-related blow to their credit. A foreclosure is initiated by the lender, who repossesses a home when the property owner can no longer make payments. Since short sales are complex deals with multiple parties, lender...