A short sale house purchase can be a lengthier-than-usual process. Once you come to an agreement with the seller, your contract has to go to the lender for approval. According to Zillow, this is where the big delays can happen – likely because banks are losing money on the transaction and they don’t like that.
Getting a lender’s approval can easily take two months or more. If there are multiple lenders involved, you could be waiting even longer. For example, if the original homeowner had more than one mortgage on the home, there could be more than one lender involved in the short sale process. Furthermore, the lender could refuse your offer for any number of reasons.
You should also brace yourself for a home that might have some home improvements needed right away. Remember, if a homeowner couldn’t afford to make the monthly mortgage payments, other home maintenance projects probably went undone.
If you’re thinking about putting an offer on a short sale, it’s crucial that your finances are in order and you’re confident your offer will have little or no complications. Work with an experienced real-estate agent who has helped facilitate short-sale transactions before.
Well before you get approved for a mortgage loan, check your credit report to make sure you’re putting your best financial foot forward and monitor it throughout the process … because it’s more than likely that the lender will too.
About the Author
Solomon Poretsky has been a writer since 1996, with experience in the fields of financial services, real estate and technology. Poretsky holds a Bachelor of Arts in political science from Columbia University.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc., an Experian company. © 2014 ConsumerInfo.com, Inc. All rights reserved.