Buying a Short Sale

A short sale is when the seller sells their home for less than the balance on their mortgage. It can also be called pre-foreclosure. Now in the buyers shoes should you get into a transaction including a short sale?

PROS

As a buyer if you have the time and money short sale might be good for you. Generally the price of the home is cheaper, but mostly because there a fixer upper and need plenty of work.

There's also going to be less competition because many don't want to get into a short sale deal.

CONS

If you're looking into a fast transaction to move in, short sales not for you. They take a while to close, up to 90 days. Even after the 90 days the deal could still fall through.

If you have the time and money to spend into fixing up the home, a short sale could be a great pick for you to get a better deal on a home. There are multiple moving parts in a short sale transaction that could fall through! so if you don't have the time its not worth it.