If you are interested in the New York real estate market, there are options abound. Some interested buyers set their sights on short sale homes. The word in the real estate market is that these homes are cheaper than market value and often deliver a great deal to the buyer. Forbes suggests that short sales may be beneficial, but you have to prepare for a different real estate process.
A short sale occurs when the seller, in agreement with the lender, sells a home for less than he or she owes. In this type of sale, the lender will technically lose money from the deal and come up short. The only other option for banks in these scenarios is normally to foreclose on a home.
In a typical residential real estate transaction, you would negotiate with the seller. In a short sale, you still work with the seller, but the bank has the final say. All short sales proceed at the permission of the lender. Short sales have their own paperwork and sale documents. The process is more complex and the paperwork is more intricate.
With a typical sale, you may renegotiate terms after an inspection. You can ask the owner to complete repairs or to credit you for repairs. With a short sale, this does not happen. You purchase the home as it is. The bank already suffers a loss. They will not be willing to renegotiate terms the way that you might in a traditional real estate transaction.
The information above is for educational purposes only; it is not intended to serve as legal advice.