Before Buying a Short Sale

Are you thinking about buying a short sale?

When I think about short sale banks, I can’t help but hear the voice of Arte Johnson (playing his Laugh-In character) in my mind. He was famous for impersonating a German soldier and sputtering, “Veerrrry interesting, but shtupid.”

Because much of the subprime mortgage fiasco was based on a ridiculous premise. Qualifying borrowers whose hopes hung on future appreciation to refinance was not very bright. However, buying short sales can be a brilliant move, providing buyers have the patience to deal with the seller’s lender.

Short sale banks change their requirements daily. They lose documents. Make unheard-of demands and then change midstream. They haven't been able to streamline the short sale process. Granted, some lenders don’t want to go through the hassle and expense of foreclosure and taking the property, either. But it can be a long road for short sale buyers. That's not to say that buyers can't make a profit on a short sale if they are willing to wait through the short sale process . . . read more about Buying a Short Sale.

More Articles by Elizabeth Weintraub:

• 6 Things to Know About Short Sales
  
• Waiting For Short Sale Approval
  
• How Sellers Can Cancel Your Short Sale Contract

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