Short Sale Buyer

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:

1. Identify a short sale: When identifying a property, give preference to one for which the amount owed is much higher than its approximate value.
2. Examine the property: Consider how much you would spend on renovation.
3. Find out its value: This should also give you a good idea about the profit potential of the property.
4.  Ask about liens: The seller or agent should be able to provide information concerning any liens on the property and who holds them.
5.  Plan for financing: Since it is a short sale, you should be able to move quickly, so figure out your financing beforehand.
6.  Contact the lender: Ensure that the homeowner has completed and signed an authorization letter allowing the lender to discuss the mortgage with you.
7.  Apply: Many lenders require buyers to make an application for the short sale.
8.  Assemble your proposal: The documents required for the short sale include:
   1.  The purchase and sale contract
   2. The hardship letter from the homeowner
   3.  A statement of the property’s value
   4.  The settlement statement
9. 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.
10. Close the deal: Once you, the seller and lender have come to an agreement, the closing follows, indicating that the property is yours.