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Buying a short sale property

The process of purchasing a property which is a short sale is somewhat different from buying a property in which the contract is not subject to lender approval. Once the offer is made, it must be submitted to the lender or lenders for their approval. Although response times vary from lender to lender, it can take two weeks or as long as 60 days to receive an approval of a short sale from a lender. Escrow will not be opened until the offer is approved. Once the lender has approved the sale, escrow is opened and the purchase may proceed in the same manner as a non short sale transaction. The buyer receives all disclosures of any defects the property may have from the seller and is able to have the property inspected by a licensed home inspector. It is likely that the sales price will be discounted from 8% to 20%, so, while there may not be money available to make repairs, the property itself is probably in better condition than a property which has gone into foreclosure. While it can take much longer to complete a short sale transaction, the benefit to the buyer is a more attractive purchase price.

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