If the price of the house you've fallen in love with seems too good to be true, it may be because the seller is trying to negotiate a short sale. A short sale is a pre-emptive action against foreclosure, and occurs when the homeowner's lender agrees to take a payoff that is less than what is owed on the home.
Financial hardship, declining market values, and overextended credit are forcing many homeowners to list their Indianapolis real estate as a short sale. These properties can be a great deal for the right buyer, but they are also complicated and risky. A short sale can take several weeks or even months to close, the property is usually sold "as-is", and the lender can change the terms of the contract even after it's been negotiated. Knowledgable buyers who are determined to pursue a short sale should have:
--Plenty of patience. Short sales are a waiting game, and definitely aren't for the buyer who needs a place to live quickly. The contract must first be negotiated between the buyer and seller, then submitted to the lender along with a mountain of paperwork the seller must complete explaining their hardship. The bank can take weeks or even months to respond to an offer, and the answer may be "no" if the lender thinks they can get more money by letting the home go into foreclosure.
--Nothing to sell. Lenders don't like contingencies such as a home you must sell before you can close or a specific date on which you must close. The more flexible you are, the more likely it is that your offer will be accepted.
--A savvy real estate agent. A short sale is no time to consider going it on your own. You need the assistance of an experienced real estate professional to help negotiate the purchase. Look for an Indianapolis real estate agent who has already closed a few short sales and who understands the process.
Short sales aren't for everyone, but for the determined buyer they can mean the house of your dreams at a dreamy price!