Financing a home is one of the most critical factors for buyers looking to purchase real estate.
However, bad credit does not have to prevent you from purchasing real estate.
Seller financing is a loan that is provided from the current homeowner who is selling their property to the buyer.
Homeowners who have a difficult time selling their home are most likely to provide seller financing.
However, if the buyer does not purchase the property by the end of the specified time, then the seller is able to sell the property and the buyer has no obligation to purchase.
#3 – Short Sales If a homeowner is experiencing financial difficulties or if the home is owned by a lending institution, then the bank that owns the home may allow the home to be sold for less than what the actually worth.
It’s not possible to purchase a home through short sale without bank approval.
This proceeding is initiated by the bank, rather than by the buyer (in a short sale).
Foreclosures take less time to complete than a short sale.
Evidenced by the statistics, foreclosure are much more common when the housing market collapses and real estate prices drop.