During your home search, you may come across a home that is up for short sale or is foreclosed. Prices of these homes may be lower than others for sale nearby, and that may pique your interest.
When a home is up for short sale, the seller is working with a lender. This could be because the seller is facing a hardship or owes more on the mortgage than the home is worth. With foreclosure, the lender owns the home and no one is living in it.
Buying a home in short sale or foreclosure is similar to buying a traditional home, but there are differences:
Once an agreement is in place, the standard sale and closing process will occur.
If you want to buy a short sale or foreclosed home, make sure you have money to cover all closing costs and for any immediate repairs. You should also look at being prequalified for a mortgage so you’ll be ready to proceed with your loan when the sale is getting close. Talk with your real estate agent if you’re interested in purchasing a short sale or foreclosed home.
Results of the mortgage affordability estimate/prequalification are guidelines; the estimate isn't an application for credit and results don't guarantee loan approval or denial.
All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Other restrictions and limitations apply.