California residential real estate can be valuable, and many people may look to get a great deal by purchasing a short-sale property. Of course, short sales are less prevalent than they were a decade ago. From 2008 to 2012, the peak years of the financial crisis, they were a relatively common option. However, there are still a number of homeowners who opt for a short sale as a way out. In these cases, the mortgage lender agrees to accept a payoff amount less than the full amount owed in exchange for a quick sale of the property to a financially stable buyer.
The process of buying a home through a short sale is different than that when a foreclosure has already taken place. These homes are owned by the bank and are sold at an auction. Short sales can be an exceptional opportunity to find a good deal, but they can also require patience and luck for a successful outcome. For sellers, short sales can help to salvage their credit. While some credit damage may be unavoidable, it is likely to be less than that associated with a foreclosure.
For a buyer, the price of a home sold at a short sale can be particularly appealing. However, in many cases these houses require repair or other special attention. The lender may also insist that the buyer pay closing costs, repair bills and other sums that would typically be the responsibility of the seller.
People who are considering buying a home in a short sale may want help in dealing with the paperwork associated with the process. A residential real estate attorney can work with interested buyers and help to complete the transaction successfully.