A short sale is an offer made to a lender on a property you want to purchase that is about to go on foreclosure, into an auction or even bankruptcy. The bank needs to approve the sale first because they will be losing some money so they will accept or decline your offer. In order to buy a house with a short sale you must act fast before any other offers coming in. This is because sometimes the bank takes long periods of time to evaluate your offer and then give you very little preparation time for paperwork.

It is important you check and review all records of where the property is located and current value of the property. Find out how many short payments you need to make to receive all the approvals from the bank. If the property you want is already in foreclosure than make sure you have the bank release you all documentation of the terms and conditions of the foreclosure to you as the potential buyer.

Always be on top for any updates by the bank since they can take time to respond. The seller must be in agreement with the offer made by you. Sometimes a seller forget to update the bank with new decisions on the property. Even though the bank might have everything ready for you the sale cannot be completed without the seller’s approval.

Have all your ducks are in a row organization is very important. If it is a property that needs work and intends to obtain an FHA insured loan it can lose your short sale approval during the time it takes to get your loan commitment. Decisions at the very last minute are pretty common during a short sale.

It is better to be pre-approved and are ready immediately to get acceptance for evaluation, inspections, etc. A lender is reluctant to hold a short sale approval open for long. Walk into any short sale transaction with patience and proper documentation for everything and it will be easier than you think.

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