If you have been looking for a new home, and you find one offered under a short sale, this may be to your advantage. While some Chicago buyers are wary about buying a home that needs to be sold with the approval of the lender, it’s a great way to get a bargain on a home that you love.
A short sale may be a perfect way to buy a home, as long as you are able to wait until the offer is approved.
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The Basics Of A Short Sale
A short sale occurs when the homeowner is facing a foreclosure and trying to avoid it. The true owner of the property, is the lender who provided the money to purchase the home. The borrower owes more on the home than it is worth, and many stop making mortgage payments. Instead of allowing the home to sit there and go to a foreclosure, the lender tries to cut their losses through the process of a short sale.
Additionally, there may be other liens on the home that have to be satisfied by the sale of the property. Anyone that holds a lien on the property has to negotiate the money they are willing to accept for the deal to be finalized.
Why A Short Sale Benefits The Buyer
When Chicago buyers make an offer on a home that is selling under a short sale, they can usually offer less than what the home is worth. The homeowner is eager to sell the home. The homeowner will want to accept an offer fast to get the process started and avoid a foreclosure.
While buyers may have to wait longer for a short sale to go through than a traditional sale, the savings on the price of the home are usually worth it. Lien holders understand that a short sale is usually the best option to get most of their money, so they are anxious to settle the deal fast.
A short sale is right for Chicago buyers if they aren’t trying to buy a home fast. When they are a savvy buyer, they can make an offer less than the asking price, but they’ll have to wait for all lien holders to accept it. If their current living situation provides them with the opportunity to wait, a short sale will give them more house for their money.
Talk with a real estate agent to learn more about a property if you find one you love that is under a short sale.