A short sale could seem like a quick, enticing buy. With more and more short sales becoming available, it can be easy to become distracted by the low prices and great deals. It is important to stay focused and avoid common mistakes when buying a short sale. Buying a short sale is slightly different than buying a regularly priced home.
STL Today has tracked success stories of homeowners in St. Louis, Missouri including J.D. Tucker from St. Louis City. According to STL Today, Tucker became single in 2012 and was faced with having to raise five adopted children with one income. He began to receive notices from the bank about foreclosing on his home. He discussed a short sale with the bank and the bank agreed. He finally sold his home for $65,000 less than the initial asking price. Tucker considers his story a success based on the sole fact that his home was sold as a short sale instead of a foreclosure.
Recently the housing market has been more favorable to buyers. Buyers can take advantage of the short sales and foreclosures because they are sold at a lower price. While this may be true, buyers should be aware of some precautions before considering a short sale or foreclosure. Home prices can be attractive due to the low interest rates. Consumers should not be wrapped up in the excitement of the price of the home and should consider other factors when trying to find the perfect home.
A short sale is an alternative to a foreclosure. You can qualify for a short sale if you are facing a foreclosure and can no longer afford your home. You can sell your home for less than the remaining balance on your mortgage. There are advantages to following through with a short sale. The mortgage company can allow you to pay off the rest or some of the house with the proceeds from the short sale.
A short sale can be an option if: