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What risks are associated with Minnesota short sale purchases?

The first thing you need to understand is that most real estate transactions come with at least a small amount of risk. Since most buyers in Minnesota are looking for a home rather than an investment, they typically do not recognize all the purchase risks. This is especially the case with short sale purchases.

It is always a good idea to consult with an attorney when you're involved in a real estate transaction -- particularly short sale purchases. This can save you headaches down the road. A consultation with an attorney can protect your finances. However, it is wise to learn a little about short sales on your own as well. Below you will find a few of the common risks associated with buying a short sale property.

  • Sold as-is: Beware of this term because it may indicate that the property you wish to buy likely has some serious issues.
  • Lengthy process: Do not be fooled by the term "short sale" because these types of real estate transactions typically take quite a while to complete.
  • Closing costs: Unlike traditional real estate transactions, short sales may mean more closing costs for the buyer.
  • Last-minute renegotiations: A lender might interrupt your plans to take possession of the property by exercising their right to renegotiate, which could mean a change in the terms of your contract.

Real estate transactions in Minnesota can be very complicated. Therefore, you should consider having a team of professional advocates you can turn to for advice. In addition to an attorney, a solid team may also include a reputable real estate agent and, in some cases, a financial advisor.

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