Real Estate Short Sales are not necessarily a cash only sale. The short sale is still owned and controlled for the most part by the seller of the short sale.
The short sale seller’s bank doesn’t care if it is a cash deal or financed. However, the seller does have control over whether to accept a financed offer or cash offer.
The Short Sale Seller
You see, when a borrower is in default, they are up against the clock. The short sale doesn’t necessarily stop foreclosure proceedings.
So, if a short sale seller receives a financed offer, they might not want to take the risk of that offer as the buyer’s financing is no sure thing. The short sale cash offer is usually only contingent upon a successful inspection period and not a financing contingency.
Buying A Short Sale Cash or Financing
Now if you have to obtain financing for a short sale, don’t let that or your agent prevent you from making offers on short sales.
It can still be a great time to get a deal and in many cases if the short sale seller is proactive, then they may have plenty of time to transact with a financed offer as opposed to a short sale cash offer.
No Sure Thing With Short Sales
Short sale cash offers can give you an advantage in picking up distressed properties. But keep in mind whether you are financing or making a short sale cash offer, there are no guarantees with getting the short sale lender to agree to the short sale.
Be sure to check out this article on the Short Sale Process as I discuss the short sale in its entirety.
Listing Short Sales
If you are a real estate agents looking to list Short Sales, be sure to check out our extensive course on listing and selling short sales HERE>