Home prices have risen dramatically in the Front Range (Northern Colorado, the Boulder area, the Denver metro area, the Colorado Springs metro area) in the last few years. The supply of foreclosed homes and homes going under short sales have fallen drastically as a result. Many of my real estate investor friends who have made money doing fix-and-flips and largely stopped doing so since 2013.
But if you’re lucky enough to have found a short sale home, congratulations! Here’s what you need to be mindful of if you’re considering a short sale home.
But first, what is a short sale home?
A short sale happens when the homeowner sells the house for less than the amount owed, and the lender does not get all its money back. Typically, this happens when the home’s value falls. A short sale occurs only with the lender’s permission.
Bear in mind that “short” refers to that the bank is getting less than what it’s owed on the homeowner’s mortgage and does not refer to the process of buying/selling the home!
Here are the 5 most common mistakes that home buyers make when considering a short sale home:
- Ignoring property problems
- Skipping the home inspection
- Ignoring legal and insurance information
- Leaving too little time
- Falling hard for a bad home
Read more about it at Bankrate.
If you want an experienced lender and recommendations for an experienced realtor to help you find your dream home, contact me today!
Questions about rates today, or about your specific situation regarding mortgage approval? Contact me today!