Buying a short sale in Hillsborough, Pinellas & Pasco Counties
The main benefit of purchasing a short sale is that you get the property for a substantial discount and the lender may offer favorable financing terms.
The following steps should be taken when buying a short sale:
- Identify a short sale: When identifying a property, give preference to one for which the amount owed is much higher than its approximate value.
- Examine the property: Consider how much you would spend on renovation.
- Find out its value: This should also give you a good idea about the profit potential of the property.
- Ask about liens: The seller or agent should be able to provide information concerning any liens on the property and who holds them.
- Plan for financing: Since it is a short sale, you should be able to move quickly, so figure out your financing beforehand.
- Contact the lender: Ensure that the homeowner has completed and signed an authorization letter allowing the lender to discuss the mortgage with you.
- Apply: Many lenders require buyers to make an application for the short sale.
- Assemble your proposal: The documents required for the short sale include:
- The purchase and sale contract
- The hardship letter from the homeowner
- A statement of the property’s value
- The settlement statement
- Negotiation: The lender may reject your offer or make a counteroffer. You must determine what your absolute highest limit would be in order to negotiate appropriately.
- Close the deal: Once you, the seller and lender have come to an agreement, the closing follows, indicating that the property is yours.