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"What is the process for purchasing a house with a short sale on my credit history?"

A short sale occurs when a homeowner sells their property for less than the outstanding balance on their mortgage, with the lender's permission.

Short sales are often considered as an alternative to foreclosure, allowing homeowners to avoid the negative impact of foreclosure on their credit record.

The homeowner must have a valid hardship, such as a job loss or divorce, to be eligible for a short sale.

The buyer must be an arm's length buyer, meaning they cannot be related to or affiliated with the seller.

The buyer must have financing in place before making an offer on a short sale property.

The short sale process involves not only the seller, but also the seller's lender, which can make the process lengthy and complex.

An experienced real estate agent can help the buyer navigate the short sale process and negotiate with the seller's lender.

A short sale will stay on the buyer's credit report for seven years.

The buyer may be able to finance a new home purchase within one to four years of a short sale, depending on their credit score, loan type, and down payment.

Since the lender agrees to accept less than the outstanding balance on the mortgage, they will scrutinize the buyer's offer and financial situation more closely than in a traditional sale.

A short sale home may be priced below its appraised value, but the final selling price depends on the lender's approval.

Inspections are crucial in a short sale transaction, as the property may have issues or repairs that the buyer will be responsible for after the sale.

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