Buying a Short Sale Home in Colorado
If you’re wondering how to buy a short sale home in Colorado, you’ve come to the right place. It can be a long and complex process, many homes don’t close in under 30 days. But, if you’re willing to wait, it can really pay off. Let’s start with some basics:
A short sale home is when the lender is willing to accept less than what is owed on the property. The home owner is really behind on payments and likely won’t catch up and the housing market likely dipped so much that the home is now worth less than what’s owed.
A short sale home is sort of a last ditch effort before a foreclosure hits. A lot of times, buyers think that a short sale home will get sold quickly. This is not the case. The lender will want to wait a long time before accepting an offer. That is, IF they choose to accept an offer. This is typically what causes such a long selling process.
Here’s a typical process that you can follow to buy a short sale home in Colorado:
1. Research is needed! Work with your real estate agent to investigate the property first. There are public records available that you can view to see how much money is left on the home as well as other helpful details.
2. The lender is steering the boat. As I said earlier, they can take as much time as they want to accept an offer to minimize their loss.
3. Inspect the home! Make sure everything is in place. Sometimes the lender will disclose a list of what’s wrong with the home. However, don’t rely on that list. Get an official inspector in there to tell you what’s going on.
A couple things to keep in mind:
1. Your timeline will be slow and can change at a moment’s notice
2. You’re gonna have to buy the home as is. There is not much negotiation on the price, features, or required fixes.
3. The deal you end up getting might not be all that great. The seller may list the home at a low price to draw in buyers. Offers will then be made. The seller is going to want to get that number as close to market value as possible to recoup their losses.
So there you have it! A general guide on how to buy a short sale home in Colorado. It’s a tough process that is challenging to go through. Let me know if you need some help along the way!