Purchasing your own property can be an exciting new adventure. But it can also be a huge source of stress — especially if you’re trying to navigate the process on your own. And if you’re also exploring less conventional methods for buying a home, you may benefit from working with someone who has a wealth of experience in real estate law. That may very well be the case if you’re considering a short sale purchase. Let’s take a closer look at short sales and how real estate lawyers can provide some much-needed support in your pursuits.
What Is a Short Sale?
First, let’s define what a short sale is. Generally, a short sale is a real estate transaction wherein a home or other property is sold at a lower price than what the current owner still owes on their mortgage. With a short sale, you’ll be negotiating with the mortgage lender, rather than the homeowner or their real estate agent.
Short sales can happen for a number of reasons, but they often occur when a homeowner has defaulted on their mortgage and is looking to avoid foreclosure. By selling their home via a short sale, the homeowner is able to sell the property and satisfy the obligation to their mortgage lender, and it may also save them some costs related to the foreclosure process.
Why Consider Short Sale Properties?
The real estate market is highly competitive right now, which makes it hard to find affordable housing. In some cases, however, short sales can provide a way for buyers to access properties that might otherwise be outside their price range. And if you’re interested in taking on a project (either to truly make the home your own or to potentially flip the house for a profit), a short sale could be a good option because these properties are often marketed in as-is condition.
That said, there are challenges that come with short sales as well. These deals are notoriously slow to finalize, sometimes taking many months to even hear whether or not your offer has been approved by the lender. In that sense, the term “short sale” is a bit of a misnomer; many would be quick to point out that these are actually long sales for the buyer! Bidding on a short sale can also be a stressful and confusing process for many people, especially those without much experience in real estate transactions. Basically, buying a short sale will always be a bit risky — but you can often reduce those risks by having your real estate lawyer by your side.
How Can a Real Estate Attorney Help With a Short Sale?
Not only can real estate lawyers advise you on legal matters pertaining to short sale purchases, but they can also help you negotiate with the lenders involved and navigate the process.
Buying any home can be a complicated process, but short sales are particularly involved. By working with a real estate attorney, you can protect yourself and manage your expectations while going after the property you really want.