How Short Sales Can Be Risky

The number of houses available as a short sale has increased in the last few years in the United States of America. As is obvious, this means that there are a lot of potential homebuyers who are choosing to go for homes available on short sale as well. The big question then is if all the people who are choosing to go for short sales are making a good choice.

From certain viewpoints short sales are actually risky for the potential home buyer.

1. Short sale deals can take a considerable amount of time to finalize because banks need to approve offers. The time that a lender can take to close a short sale deal can be anything between three months to seven months. This delay can result in the potential home buyer losing out on other options.

2. With short sale deals, many lenders require the potential buyers to pay for appraisals and invest in repairs before the deal is finalized. This can result in this money being lost.

While the above mentioned and many other flaws of short sale deals exist, the fact is that the amount of money that an individual can save by choosing short sale offers or even bank foreclosures compared to regular MLS homes is well worth these minor inconveniences.