Maggie, your REALTOR®'s Blog

Having sold more homes to first time buyers in the past 12 months than at any other time in my 25 years selling real estate, I can give you some of the best "feet on the street" knowledge about some of the sagas with short sales.

Short sales can be tricky, especially if there are multiple liens on the property. They are anything but short! Time wise, if you are patient, a short sale can get you a really great home at a reasonable price...but sometimes they can be a colossal waste of time and patience...the best approach is know exactly what you're dealing with:

1) How long has this home been on the market and where are you in the process? Has the BPO been ordered? How many liens are on the property? Have you contacted each lienholder?

2) How many offers have been sent to the seller's lender?  ONE should be the correct answer with other offers as BACKUPS.  If you're told all the offers have been submitted this is a red flag.

3) Which banks are we dealing with? I will tell you that the bank holding the mortgage makes a HUGE difference in the end result...Countrywide is notoriously s-l-o-w in responding, they are now owned by Bank of America, Wells Fargo is great and will get you an answer within 30-45 days, Chase is OK but if you're dealing with what used to be WAMU...that's a whole other story.

4) Open escrow ONLY after you get IN WRITING that the seller's lender(s) has approved the short sale...otherwise you may be risking your deposit...be sure that the short sale addendum says that all your timelines begin AFTER approval of the short sale. Otherwise, you may not have an opportunity to do your inspections and other due dilligence...

5) Will the seller's lender agree to pay the buyer's closing costs? This is another item that is up for negotiation and there are no guarantees that the seller's bank will agree (even if the seller agrees!) That's NOT the case with Fannie Mae and Freddie Mac loans, Congress passed a law banning this practice.

For expert guidance on successfully purchasing and negotiating a short sale purchase please visit my website, www.maggiehomefinder.com