People buy short sale homes for many different reasons. It is a great option for first time buyers as it allows them to get into properties that they may not otherwise be able to afford. Another reason people choose short sale homes is as an investment property. They may be looking to flip the property and then resell it at a considerable market making them a tidy sum of money in a short amount of time or they plan to rent it out and create an extra stream of income.
While short sale properties can present great financial opportunities to the investor it is best to tread lightly as it can be a very emotional time for the seller. The buyer should be careful not to get caught up in the tense situation. It is best to remain neutral on their part to avoid getting embroiled in a delicate situation that you may have difficulty extricating yourself from.
Don’t be a Superhero
It is human nature to want to find solutions to problems when things go awry. For example, if you’re planning on a short sale for a rental property you may be looking for a tenant to occupy the property after the sale. Why not the current homeowner? While this may seem to be a logical solution to a delicate situation it may lead you down a precarious legal path fraught with complications.
People often make rash decisions when in a highly emotional state and their attachment to your new home may encourage them to dig in and refuse to relinquish the property when needed. Instead of finding valuable investment property you could end up dealing with evictions and other emotional troubles.