Buying a Short Sale Home

There are some differences in the process with buying a short sale home in Laveen.  Let us first define what a short sale is for those unfamiliar with the term.  A short sale is a home that is worth less than what is currently owed on the home.  Several people that bought in Laveen from 2005 ro 2009 may have bought at a time when values were higher, and when values declined they were left upside down in terms of value on their home.  Generally speaking a home owner short selling a home has experienced some form of hardship which makes it difficult to continue making payments on the home.  Choice at this point is to allow the home to go to foreclosure or to short sale the home. 
A short sale home generally is due to a hardship on the home owner.  Many times reasons for a short sale can be loss of employment, curtailment of income, loss of relative or other things that occur in life.  Point is that the hardship makes it a little different on the purchase process. 
If you have your offer on a short sale accepted by the home owner, then you may still have to wait for another acceptance prior to being able to purchase the home.  Correct, since the property is less worth less than what is owed, the bank must approve the loss money in the sale.  This is why the process of selling a home like this is called a short sale.  So in short, first you need to get home owner approval on your offer, but then you must also get the banks approval on the short sale.  If there is more than one loan on the home, then you must get more than 1 approval on the short sale.  The process does not have an average as far as time is concerned, so you can’t really make any plans.  You could potentially have an approval within weeks or wait for a year.  You could also wait for a long time also to have the short sale denied.  If the sale is denied you have just wasted all your time waiting for an approval on a home you won’t get.  Of course the bank may foreclose on it and you could try to purchase it as a bank owned property for sale.
Also keep in mind your inspections much like a bank owned home will be mostly to find current condition to home and your comfort with that condition.  Due to owner’s situation with hardship and financial situation, most short sale homes are sold in present condition and no repairs will be made.  So, when buying a short sale home in Laveen, be sure to have the home inspected to make sure the condition of the home satisfies your needs.  Unlike traditional home sales, or even bank owned properties the buyers due diligence period (inspection period) does not start until the bank/s have approved the short sale.  So as a buyer it may be a wise choice to wait for an approval on the short sale before you invest money into inspections or even appraisals.
Once you are through approvals and inspections, it is in your lenders hand to close on the short sale home in Laveen.


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