home improvement






 

Question by  Tyrone (33)

What should I know if I am thinking about buying short sale with a FHA loan?

 
+7

Answer by  MortgagePro (25)

Make sure the seller accepts FHA loans as many short sales require a conventional loan with a high down payment.

 
+6

Answer by  John38 (79)

I would look for properties which already have approval on the short sale if possible, and also look for properties with little or no repair issues.

 
+6

Answer by  MPyles (201)

There is not much you need to worry about, it will not hurt your credit due to you are the one buying it.

 
+5

Answer by  rhonda515 (607)

The most important thing to know is that a short sale can be a drawn out process. Often it will take months to get an answer from the lender. You want to make a strong offer that the bank will want to accept. Engage a loacal realtor who is familiar with distressed properties to help guide you.

 
+5

Answer by  Devin98 (487)

When a home is purchased through a short sale the property title is provided free and clear of all leins and will become your property. A short sale means the financial institution is accepting less than what is owed and this allows the buyer to sometimes get a good deal on a property.

 
+4

Answer by  Blossom9283 (358)

We had a hard time because the previous owner just bought it as a short sale and the mortgage company said you can't get short sales with an FHA loan.

 
+3

Answer by  Devin98 (487)

A short sale must be approved by the mortgage company as they are accepting less than what is owed on the home based upon current area values.

 
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