The Short Sale: The Importance Of Having A Real Estate Attorney On Your Side
If you are purchasing a home that is available under a short sale, the process for buying your home can get complicated fast. A house that has been approved for a short sale means that the owners owe more for the home than what the home is currently valued at. Although the owners may have accepted your offer, the lender for the sellers has to approve the purchase price as part of the short sale process. There are often delays in the short sale process, and having an attorney handle your closing for you is essential when you are trying to purchase a home this way.
Why Lenders Agree to a Short Sale
Sellers who are close to going into foreclosure can ask their lender to approve their home for a short sale. While the lender isn't going to get the full amount that is due on the loan, they will lose less money if they approve the short sale than if they force the property into foreclosure. The foreclosure process is expensive for the lender, and it is generally worth the loss for the lender to take the short sale and move on.
A Short Sale Can Benefit the Buyer
With time at an essence for the lender, they want the property to sell so that they can collect their money and go forward. When you make an offer on a property offered for a short sale, you may be able to find a bargain property because the lender will be anxious to get the deal done. The problem is, the lender has to agree to the purchase price. Waiting for the lender to agree to the purchase price and negotiating back and forth with the lender can get complicated. It's important to let your lawyer know how far you are willing to go to purchase the property.
Negotiating With the Seller
With the home for sale in a short sale, the seller probably doesn't have much in the way of assets to bargain with you. But you can negotiate with the seller in other ways when it comes to the property. You can ask for lawn equipment, appliances, play structures, and more to be left as part of purchasing the home. You can be creative here, because you may end up waiting longer than normal to close on your new home. While the purchase price may not be negotiable, other parts of the property might be.
To learn more, contact a real estate attorney like Maury K Cutler.