Mistakes You Need To Avoid
Short sale is not a cup of tea for everyone. You need a lot of experience and skills to close a short sale. If you don’t have the required knowledge you may not be able to complete the short sale process successfully. There are a lot of things need to be done at accurate time and in a right manner. If you fail to take the immediate action at the perfect time, the chances of success are minimized. There are a number of things need be gathered to close a short sale. Most of the people make short sale buying mistakes while going through the process of short sale.
Short Sale Buying Mistakes
Some of the major mistakes are mentioned here that you should avoid while buying a short sale.
Ignoring Property Problems
Foreclosure property owners don’t want to leave the home. Sometimes before leaving the house, they take their frustration out on the property and may damage the property deliberately. It has been seen that some of the foreclosed houses are badly damaged. Even the tiled bathroom floors and cardboard cabinets are broken intentionally. On the other side, vacant properties may face the problems that are created due to negligence and ignorance. The vacant property could have issues like mold, terminates, thieves, squatters and filth.
In many states banks are not bound to provide the disclosure statement typically as required in traditional sale of the property. The statement includes the condition of property. The buyer of a short sale is essentially starting from the scratch line when it comes to determining the value issues with the property.
The most important step to take is to find out the problem attached with the property before making any kind of purchase decision. If you skip this step you may face a lot of problems after buying the property.
Skipping the Home Inspection
Inspecting a home is a very critical step in the process of buying a short sale. You need to inspect the home, take your time, go to the site and inspect property before making any decision. It is better to hire the services of a short sale agent to inspect the property and initiate the process of buying a short sale.
Many home buyers don’t inspect the property and start the process of buying a short sale. If you just inspect the property properly, you may be in a better position to bid and buy. Skipping the home inspection may invite you to a number of problems.
Ignoring the Legal and Insurance Information.
Knowing the legal and insurance information is a really important. A typical foreclosure statement may indicate that a house has been in a flood area or has an unpermitted renovation. Buyers need to do a little bit extra to get this information because the bank owned properties are sold at the rule of “as is”.
If the property is in a flood zone, then you may need to pay thousands yearly as additional insurance cost and it can also make it difficult to resell the property. You can avoid all these costs and tensions if you get the right information about the property. You should check with the local planning department and make it sure that there are not any neighbors having the plan to build an enormous house or to demolish and existing one. Any nearby plans or work would be known and disclosed by the seller, but not in the case of foreclosure.
Leaving Too Little Time
Foreclosure and short sale buyers should be aware that a short sale will not be closed as quickly as it would be in traditional sale of home. The lender must approve the short sale and to receive the less as compared to the owed on property. Even the troubled banks may be overwhelmed with foreclosure and may respond slow.
Banks are having huge losses so they are trying their level best to recover as much amount as they can. They are not just going to let the house sell below their expectations.
Sometimes legal troubles can also effect the closing of a short sale. It may take more than six months to sell the foreclosed property and bank may push repeatedly close date due to unresolved liens.
Falling Hard For a Bad Home
Real estate industry is not an easy market. Finding a great deal may be very difficult and if you don’t have sufficient knowledge you might be caught in a trap. Think of yourself as an investor and consider the inspection, price, legal status and value dispassionately.
If you avoid these mistakes and take care of the complete buying process you may be able to find a good deal.