There are pros and cons to any purchase, but here are the ones for a short sale:
Short sales are NOT typically a short process for any party involved. They just mean that the owner is short on funds that they owe to the bank and the bank is saying, "sure, I'll let you not pay me all the money you owe me." In some cases, it just means the house isn't worth what the owners owe and they are not financing behind in payments. This purchase could be great as you should have equity built up in the property since you aren't paying full price or what it's valued at. A major concern for first time buyers is the down payment money. On 90% of short sales, the bank will not pay for closing costs that could help off-set the down payment. Towne Mortgage of the Carolinas just started a program for buyers that purchase a short sale through their lenders. They will give at least $1,500+ in assistance. The credit score and down payment amounts won't change just because you're purchasing a short sale. USDA loans are 100% financing and no down payment, same with a VA loan. There are charges lumped onto the loans but do not come out of your pocket. FHA is 3.5% down, unless you buy a foreclosure, you could put $100 down. Conventional loans could be 100% financing, 95% financing, or other amounts. I've had some short sales sale in as little as 4 months. The one I'm working on now has taken 7 so far. Most lenders will start at a 620 for loans but I have one that can get you started at 580, with appropriate debt to income levels.
I'll be glad to assist in any other way so please call, email, or text for further assitance. Good luck in the house search, Jenni with Coldwell Banker Howard Perry and Walston 919-628-9936 or email@example.com