1. Be Wary of Short Sales
Many people think they are going to get great deals by rescuing borrowers who are in the hole (those that are in a short sale)
What is a Short Sale: A home sold for less than what's owed on the mortgage
In order for the short sale to go through there is a lot that needs to happen which can take a quite a while: The lender holding the mortgage has to agree to the cut price and many are reluctant to do so (with good reasoning) This adds another layer of complexity to an already complicated transaction. I have known of short sales that take anywhere from 30 days to 16 months
Now foreclosures are a whole other story; lenders are often more realistic about the value.
2. Look for "Battered Histories"
A battered history home means
1. Home has been on the market for 90 days or more
2. The seller has cut the price several times
3. The home has had other offers that have fallen out of escrow
Having a "Battered History" could mean that the seller is getting anxious to get out and may be willing to negotiate.
3. Get Pre-Qualified
Especially in today's market its always a good idea to get Pre-Qualified. Why, you may ask; take a look at the following situation:
You are looking at a property and so are 3 others. You are the only one who has been pre-qualified which means you present the most secure and attractive deal. This brings up your chances of getting the property.
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