Short sales are a fact of life in Ellis County as they are in the DFW area. A short sale is when the owners equity is not sufficient to sell the home and payoff the mortgage and pay the owners closing costs. The owner must have a “special situation” but the rules on the special situation have been relaxed.
Are you interested in buying a short sale? Depending on the timing, you might find a lot on the market. Astute buyers often seek out these listings in the hope of getting a great deal on a home. We have the ability to set up searches that will notify you immediately when a short sale matching your needs comes on the market. You need to be the first to see and make the offer on a short sale.
However, short sales can be challenging. They often draw multiple buyers, who compete for the winning bid. And it can take a while for all the paperwork to wind its way through the approval process. It is not uncommon for short sales to take 8 to 16 weeks to close compared to 4 or 5 weeks for a normal sale.
Again a short sale occurs when a house is sold by someone whose outstanding mortgage balance is more than the house is worth. The owner works with his bank, which must agree to accept less than it is owed on the house. As a result, short sales often take longer than a traditional sale.
Here are some tips to successfully purchase a short sale: