As a person in Tennessee. What should I look out for if I purchase a house in a short sale situation.?
Things I should look out for regarding the following as a person contemplating buying a property of a short sale in Tennessee?
Appraisals?
Home inspection?
Secondary Liens?
Tax ramifications as the purchaser?
Down payment or earnest moneys involved in the transaction?
There is major documentation online about it, but not information for purchasers. I know it would be long process, but any insight or input would be appreciated..
The process is long depending on the bank trying to sell the property. When you make an offer make sure you add a drop dead date in the contract. This will allow you to legally move on if the lender that own the property don’t sit on their hands while you await their decision. After the drop dead date you may legally look at and make offers on other properties. Don’t allow your real estate agent to talk you out of this drop dead date. This give you some control over your own destiny, in this transaction.
About the legal things the title company will make sure that you get a clean title without secondary, mechanic of other liens. Between the escrow closing agent and the title company these two companies will ensure that all the legal things are done according to local, state and federal laws.
You would be required to pay for an appraisal and home inspector. If you have a friend that is a handy man/woman or that is in the construction trade this might be a better choice as most home inspection contracts have so many holes in them they leave Swiss cheese admiring them.
Your down payment should be taken by an escrow closing agent. This closing agent would also provide you with escrow instructions, these are basically the terms and contract of the transaction.
If you are securing a mortgage loan for this transaction make sure you are provided a HUD-1 an estimate of closing cost as well as a Good Faith Estimate (GFE),a s well as a Truth In Lending form (TIL) These two documents will explain the cost, interest rate and terms of your mortgage loan be it a conventional, FHA or VA mortgage loan.
Make sue that you are the most informed individual around. You are the one purchasing the property, therefore everyone in the transaction is basically working for you, ASK ASK and then ask again until you understand the question you asked. It is too late after the transaction close to say “I did not understand that.”
By being ignorant the real estate mortgage loan will not be rewritten nor other parts of the real estate transaction.
I hope this been of some benefit to you, good luck.
“FIGHT ON”