Question
I found a town house in what appears to be in excellent condition in Brooklyn. It is being offered as a short sale. The agent says I must sign a contract before I know whether my offer is accepted. What are the risks of this?
Answer
There are no significant risks in buying at a short sale.
Steven Einig, a Manhattan lawyer who specializes in foreclosures, said a short sale means that the bank holding the mortgage is willing to take a sum less than the total amount due. This is often referred to as an upside down mortgage, Mr. Einig said.
He said that the buyer should have the contract examined by a real estate lawyer and, if needed, have provisions inserted about the buyers financing for the purchase and an assurance that the existing mortgage on the property will be canceled.
Once the contract terms are acceptable to the purchaser, he can sign the contract and put down a deposit. If the offer is not accepted, the purchaser is not obligated to do anything and the deposit would be returned. If it is accepted, the parties are in contract and must abide by the terms of the contract.
Jay Romano
Source: New York Times – U.S.A.
Agosto 22nd, 2008 a las 6:58 am
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