Short sales are different from regular home sales. Before looking at or purchasing a short sale, it is critical that you know them and what the process involves. This article provides some general guidance on purchasing Massachusetts short sale homes.
An Overview of Short Sales
Short sales describe homes where the funds from the sale will not sufficiently cover what the seller would need to pay expenses, and the owner has no personal funds to make up for the shortage. Costs related to the sale can include the equity lines on the home, real estate fees, closing fees, and other related charges. The bank on the home would be "short" what is due/owed to them, which is where the phrase short sale originates. The banks owning the liens on the home for sale must all authorize the short sale for it to close. This is how it can get complicated. Mortgage Companies will not grant approval until there is an actual accepted offer. Homes listed as short sales can only be purchased if this approval is ultimately received, and there are no guarantees that it will be.
Short Sale Pros
The amount of short sale inventory listed depends on market. Sometimes, there might be an abundance of homes. Short sale properties are frequently an opportunity for buyers to get a reduced price on homes. However, they do not work for all prospective buyers.
Short Sale Disadvantages
Short Sale Timelines
Potential buyers must move forward with an offer to purchase without any promise that the purchase will be allowed. It can also take a lengthy amount of time to hear back on the approval status (typically several months or even up to a year). Therefore, short sales may not be great alternatives for individuals who must close during a specific time frame.
Repairs Required with Short Sales
Short sales typically need some work. They are usually sold without any concessions for repairs since the seller has insufficient funds and the banks are already being shorted. Buyers must be able to handle work with their own funds.
Purchasing Massachusetts Short Sale Homes
Short sales do not work for everybody. People must be aware of the risks and rewards before considering or placing an offer on a short sale. For buyers with time to spare and the capability to complete repairs, it can be a great opportunity to save money on a home. Speak with your real estate agent for additional facts on purchasing Massachusetts short sale homes in your city or town.