What does it mean when a house is approved for short sale?
What does it mean when a house is approved for short sale?
When the house you want to buy has been approved for a short sale, it means that the lender holding the mortgage has agreed to sell it at price that’s less than the outstanding mortgage amount.
How long does it take for a short sale to go through?
It can take up to a year for a short sale to go through, so even if you make an offer, keep exploring other homes for sale. You never know when your dream home will become available at the right price. How do I know if a listing is a short sale?
Can a buyer make an offer on a foreclosure short sale?
In a foreclosure, the lender has already bought the property, so you’ll make an offer directly to the lender, without a buyer involved. In a short sale, the home is being sold at a loss.
Can a buyer walk away from a short sale?
Many real estate contracts bestow upon buyers certain rights of inspection and contract contingencies, which give the buyer the right to walk away. Here are other reasons a buyer may cancel an approved short sale: Home needs too many repairs and the bank won’t pay for repairs.
Is it possible to buy a house in a short sale?
In some real estate markets, fewer than one in 10 short sales close. Just because a home is listed as a short sale doesn’t mean it’s really for sale (because it’s subject to lender approval), nor does it mean it will sell at the advertised price. Here are six things you need to know before trying to buy a short sale.
What does it mean to be approved for short sale?
“Approved for short sale” means the bank has already determined that the homeowner qualifies for a short sale and has approved the request to sell the property at a reduced price. It is possible that an earlier buyer made an offer that was approved, but did not close the transaction.
Can a seller reject a short sale offer?
Even if a seller has already been approved by their lender for a short sale, there is no guarantee that the lender will accept your offer. They may believe your offer is too low. If this is the case, the lender may counter your offer, flat out reject your offer or they may not even respond to it.
How does the short sale process work for a home?
The short sale process is a lot like buying a home off the market. You’ll find a place and get pre-approved for financing (unless you’re paying in cash). Then you’ll make an offer, negotiate the sale, and close. But at any of these stages, there are unique challenges for short sale homes. Here’s what you need to know.