If you don’t know what a short sale purchase here is how it works, it is the simple process of making an offer to the bank on a property that is about to get foreclosure or go into bankruptcy. The bank reviews your offer and decide whether to sell or not since they are taking a loss with this types of sales. You must act fast in a short sale because many better offers can come in. Sometimes the bank will give you only weeks to get the paperwork done after months of evaluatating your offer.
It is important you check and review all records of where the property is located and current value of the property. Find out how many short payments you need to make to receive all the approvals from the bank. If the property you want is already in foreclosure than make sure you have the bank release you all documentation of the terms and conditions of the foreclosure to you as the potential buyer.
Check with the bank each week for any updates or changes to the property and on your offer. The seller has to be on board to be able to perform the purchase. Sometimes sellers change their mind and forget to tell the bank which might end up in time wasted. Even though the bank owns the property they still need approval from the seller in order to complete the sale.
All your paperwork must be perfect and ready for the final deal. If a property is going through repairs and intends to get loan this can affect your short sale process because it can either slow down the process or affect your offer on the property.
If you can get everything pre-approved when it comes to appraisals, inspections and any other evaluations on the property it will save you any last minute hassle. Lenders will not have an approval for a short sale open for long so taking action fast is important. Get into any short sale with patience and act fast for any last minute deals or changes.