It is common sense to expect a buyer to present a pre-approval letter from a mortgage lender. This letter shows that he/she has the money to purchase the house and any other financing required. Signing a contract with a buyer whose purchase of your home is dependent on another sale could put you in a bind especially if you have to close your sale by a certain date.
Even after doing all these things, prepare yourself financially and mentally for less than ideal scenarios. A house could sit on the market for a longer period of time than expected. If you do not get a buyer in time, you could end up paying two mortgages, renting out the house until you find a potential buyer and in dire situations, end up in foreclosure. Foreclosure auctions are conducted on a courthouse’s steps and the trick to avoiding a foreclosure pitfall is doing thorough research. If you are looking to short sale your house , it is advisable to attend several auctions as an observer. Find out all requirements from the auctioneers or attorneys before putting up your home for an auction. Look out for legitimate intentions as well since some companies may require some amount of money.