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Reviewing the pros and cons of short sales

Like many Hoover residents, your vision of your dream home might not match the one you are currently living in. The trouble is that many such homes are outside of their dreamer's price ranges. It is for this reason why short sales are often so attractive. You might see a palatial home listed at an insanely low price on a short sale and wonder what the catch is. Countless people have come to us here at Somma & Macon PC with the same question. We tell them that there might not necessarily be a catch, yet a short sale is still not something that you want to jump into without thinking. 

Essentially, a short sale occurs when a homeowner cannot recoup the amount he or she owes on his or her home in a sale. In such a case, the lender must agree to accept whatever price the home can net and then simply absorb the loss. In such a case, you might indeed be able to get into a very nice home at well under what you might normally be required to pay under other conditions. Plus, buyers are often scared away by short sales, so you might face less competition for the property you are considering. 

However, the website eLend.com points out that there are some potential disadvantages you should consider before buying a short sale home. These include: 

  • The extended period of time that short sales often take in order be granted approval
  • Whether local market conditions might dictate an even lower purchase price
  • The fact that you have to buy the home "as is"

This last factor should drive home the importance of having an inspection done prior to buying a short sale home. More information on short sale transactions can be found here on our site. 

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