Short sales are not the same as the normal home sale process. Prior to looking at or buying a short sale, it is essential that you have an understanding of what they are and how they work. Below is some important facts on buying NH short sale listings.
An Intro to Short Sales
Short sales describe listings where the sale price plus expenses will not be enough to cover the balance on the mortgage, and the owner has no savings to pay for the difference. Costs involved in the transaction may include the equity lines on the property, broker fees, bank fees, and other applicable costs. The mortgage company on the home will be "short" what is due/owed to them, which is where the phrase short sale was derived. The mortgage companies holding the liens on the home for sale must all accept the shortage for it to close. This is how it can get complicated. To obtain approval, home owners must provide certain financial documents, hardship letter, and a contract from a home buyer. Listings offered as short sales can only be sold if this approval is actually obtained, and there are no guarantees that it will be.
Short Sale Benefits
The amount of short sale inventory listed has a lot to do with the real estate market. At certain times, there can be an abundance of homes. Short sale properties are frequently a chance for buyers to receive a great deal on listings. However, they may not fit the requirements of all buyers.
Short Sale Disadvantages
Short Sale Time Frames
Prospective buyers must move forward with a contract without any guarantee that the sale will be allowed. It may also take a lengthy amount of time to receive word of the status (normally several months or even a year). Therefore, home buyers requiring to settle quickly should not attempt to purchase short sales.
Short sales can often require more repairs than non-short sales. They are usually sold without any concessions for repairs because the seller can not afford to complete any work and the lenders are already being shorted. Buyers must expect to handle work on their own.
Buying NH Short Sale Listings
Short sale listings do not fit everybody. Buyers should understand the advantages and disadvantages before viewing or making an offer on them. For potential buyers with moveable time frames and the capability to make renovations, it may be a great way to save on a property. Consult with your real estate agent for more information on buying NH short sale listings in your state.