Question:

How to buy a short sale property?

Answer:

Homeowners that are pressed to sell are a target of those investors looking to buy a short sale property.

Buying a short sale property means the bank or lender agreed to take a lesser amount to satisfy debt, fully or partially. In some cases, a bank will agree to a short sale and than file a deficiency judgment for the deficiency.

How to buy a short sale property?

Hire a real estate agent to research the public records for the properties' title and foreclosure information. Get an experienced short sale agent or you may not be successful buying short sale property. An experienced short sale agent will know how to deal with more than one existing liens on the property, bargain with the lender and the seller.

Usually, the seller is supposed to submit a hardship letter to the lender. However, even if all the paperwork is perfect and the short sale bid is high, the lender may refuse to accept the short sale.

Why buying a short sale property is so difficult?

Lenders will seek to minimize their losses. The bigger the lender, the greater amount of properties to foreclose on and the bigger the losses. Short sales will usually wipe out any junior lien holders as the primary lien lender only aims to recover their losses. For the same reason, a smaller first lien holder who does not have hundreds of properties in foreclosure in their portfolio may very well agree to a property short sale.

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