Many potential home owners are asking themselves Why buy a short sale? The term „short sale“ has just crept into the vocabulary of many Americans for the first time. A short sale occurs when a bank agrees to allow a sale of a property to occur even if the new purchase amount is not enough to satisfy the existing mortgage(s). Banks are becoming increasingly willing to accept these terms as they view the short sale as a tool to mitigate their loss.
Todays home-buyers come in two flavors: reluctant or greedy. If you are in the first category, then the question, Why Buy a Short Sale?, has a very easy answer, You Don’t!. However, if you put yourself in the second category (ok, you don’t have to admit that you are greedy), then you may want to strongly consider buying a short sale.
The reason is simple. You have an incredible opportunity to buy real estate at a severe discount. In addition, unlike many foreclosure auctions, during the short sale process, you will have plenty of time to do due diligence on your property. As part of due diligence, you can inspect the property, inspect the title, get repair estimates, and anything else you feel needs investigating. The same thing can not be said for buying property that is further along in the foreclosure process.
As mentioned earlier, the main reason behind why to buy a short sale, is the massive savings that may occur. These savings occur because the bank realizes that they must entice future buyers to purchase their property. When banks acquire foreclosure property as inventory their expenses start to accumulate. These expenses include insurance, taxes, maintenance, and real estate fees, just to name a few. The bank attempts to avoid these fees at all costs. The two main ways that they attempt to do this are by keeping the property owner in the home, or by getting the home sold before they foreclose.Immobilienmakler Heidelberg Makler Heidelberg
Source by Dave Peeples