Right now one of the most popular requests that I am hearing is that someone wants to buy a bank owned or short sale property. These two property types are very similar in that they both entail negotiating with the bank for the ultimate purchase price.
The other similarity is that in both instances you are asking the bank to take a loss on their asset - their asset is the mortgage on the property you want to purchase. This is not always as easy as some of the Real Estate Experts might say... but if you have your ducks in a row, then it can be accomplished in a way that can save you a good bit of money on the property you want to purchase.
The most vital step in the process that is often pushed until later-on in the process is making sure that the finances are in place.
This can mean any number of things... but we can narrow them down with one simple question:
Do you have enough cash to close on the property without financing and without hurting your financial well-being?
If you answer is no... and for most people it is, then you need to pull back the reins and start at square one... get with your favorite mortgage broker, like me!
Your Mortgage Broker will help you understand the process involved in financing a short sale property. He will also help you understand the costs...
Right now there are some amazing deals out there... foreclosures on properties with lots of equity. Getting your team together before you start trying to find the property is important... but getting your Mortgage plan in place is key.
For more information on Short Sales and Mortgages, please follow this link to learn more about the different options of financing a short sale: