short saleWhen homeowners are in a hurry to get out from under their current debt with real estate, they may do a short sale. If this is the case, they are agreeing to sell the property for less than they currently owe.

In order to help themselves financially, they may have made a deal with the bank directly. However, for you the real estate buyer, this can be a easy way to find a great deal!

Don’t Flip the Property Right Away

One thing to remember when you buy properties like this is that you want to keep them for a while. Give the property time to mature and gain back whatever value was lost.

If you can do this, you’ll make your original investment back and be able to sell at a profit. However, if you flip a short sale, you’re only going to make someone else money.

Required Documents for a Bank Loan

Even as a potential home buyer, you need to be aware of the ¬†financial details of the bank. Each institution has their own procedures and will require certain documents to be filed. Make sure all your documents are in order so you don’t lose the purchase.

While you’re discussing short sales, you have to remember you’re in San Diego. The low price of a short sale here may be considered high in other portions of California. Just plan ahead with your budget and know the bank loan might be have to be a bit higher.

Obtain a Pre-Approval Letter

If you’re not sure what amount you need, talk to the loan officer about a pre-approval letter. This document will let you put in offers on short sales in a variety of neighborhoods.

Find Short Sales on Open Offer

After you have this letter in hand, use OpenOffer.com to find short sale deals you like. This will give you access to pictures, the asking price and the location of these homes. Then, you can drive around to these particular neighborhoods and see if you like the location.

Once this research is done, you’ll be more educated in how to purchase a San Diego short sale and make money at the same time. You’re already saving money on the entire home purchase, and a short sale will help you save money for remodeling as well.

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This is filed under Short Sales.


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