What should I know if I am thinking about buying short sale with a FHA loan?

Answer by  MortgagePro (25)

Make sure the seller accepts FHA loans as many short sales require a conventional loan with a high down payment.

Answer by  John38 (79)

I would look for properties which already have approval on the short sale if possible, and also look for properties with little or no repair issues.

Answer by  MPyles (201)

There is not much you need to worry about, it will not hurt your credit due to you are the one buying it.

Answer by  rhonda515 (607)

The most important thing to know is that a short sale can be a drawn out process. Often it will take months to get an answer from the lender. You want to make a strong offer that the bank will want to accept. Engage a loacal realtor who is familiar with distressed properties to help guide you.

Answer by  Devin98 (487)

When a home is purchased through a short sale the property title is provided free and clear of all leins and will become your property. A short sale means the financial institution is accepting less than what is owed and this allows the buyer to sometimes get a good deal on a property.

Answer by  Blossom9283 (358)

We had a hard time because the previous owner just bought it as a short sale and the mortgage company said you can't get short sales with an FHA loan.

Answer by  Devin98 (487)

A short sale must be approved by the mortgage company as they are accepting less than what is owed on the home based upon current area values.