By Sonia C Llesol
Although most shrewd home buyers and home sellers are familiar with the differences between a short sale and a regular home sale, many people are not familiar with the intricacies involved in the whole buying and selling process.
The home buying process is more complicated than you think. Before you proceed with buying, make sure to ask yourself if you are prepared to do it. In the world of real estate, there are several options presented to you, such as buying a home sold short or buying a regular home.
Buying a home short usually takes a longer time to complete because of the process of getting the lender agree to do this kind of sale. Nevertheless, the timeline has considerably improved in recent months. As soon as the seller accepts an offer, the negotiation process with the mortgage lender starts.
Transactions vary from a short sale homes to another and lenders have their own timelines and guidelines. Purchasing a home sold short could give you a good bargain because it is cheaper than buying a regular home.
The following guideline could help you differentiate between a home that is sold short from a regular home buying.
1. A short sale home needs your extreme patience since it takes longer and differs from state to state. A regular home sale is easier and faster to process.
2. As a buyer, you will be dealing more with the mortgage lender, the bank and other parties who participated in the loan. In a regular home, you will only have to deal with the home seller or the homeowner with the entire home buying process.
3. The lender will try to look for all means to recover as much money as they can and would not be willing to agree to sell a home short. When buying a regular home, once the seller agrees to your home offer, you will be able to seal the deal quickly and be able to set the closing date as soon as possible.
4. A home sold short has many complications and could have liens attached to them. Keep alert on any encumbrances of the home before you decide to buy. In buying a regular home, you have less fear of any encumbrances, although it is more expensive than a short sale home.
It is of vital importance to determine your net worth so you can decide whether to buy a home that is sold short or buy a regular home. After you have considered this factor, you will be able to make your decision well. Bear in mind that you should review and appraise your options carefully before you buy.
As the number of short sale homes continue to dominate the real estate market, it is necessary for both buyers and sellers to have a better understanding of the process involved.
Most importantly, as a buyer, you should be able to buy a home that best fits your preference and lifestyle, regardless if it is a sold short or not.