Mar 6, 2012

Short Sale Disappointment

If you are looking to buy a new home now is the time to do it as this is a buyers market. With the housing market in a slump prices are at an all-time low in many states such as Florida, Nevada, Arizona and California.

You have several options when looking for a new home you can purchase a foreclosed home from the bank. You may also purchase a home in what is called a short sale which in the in has to be approved by the lender which is generally a bank.

If you do have a lot of patiience you may want to purchase a home in what is called a short sale from a bank but I must warn you you must have a lot of patience. Let me give you an example of what you might encounter. Let us say you see a home advertise for $50 thousand dollars you decide to bid on it normally the lender has 90 days to approve your bid. You will be asked for good-faith money a small deposit probably around a thousand dollars. If you cancel the deal before the 90 days is up you will lose your deposit. If at the end of the 90 days the bank has not given you an answer you can cancel and your deposit will be returned. Normally the price of the home was set by the homeowner but the lender does not necessarily have to honor it. They will check the market value of the surrounding homes and if it is more they will raise the price. For example your $50,000 home could easily go to $60,000 or more. If the lender does this you may cancel the deal and your deposit will be returned. Is very stressful and disappointing to bid on a short sale you are much better off with a foreclosure. One of the advantages of a foreclosure is you will receive an answer generally in a few days. Be sure to use a reputable real estate agent they can guide you through this process.

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