If you are considering buying a Short Sale, whether you are in the Manchester NH area, Southern New Hampshire or located aywhere else thoughout this great country of ours, the short sale process is the same. As a buyer there are some things you need to do in order to have an advantage and opportunity to have your short sale approved. The short sale process can be long, it can be frustrating but it does NOT have to be. 

 

THE TOP 10 THINGS YOU NEED TO DO:
 
1. UNDERSTANDING THE PROCESS OF THE SHORT SALE: Before you start looking at homes or completing research. you need to know that the basic premise of a short sale is. When a home owner owes more than what the home is worth in todays market, they ask the sellers bank to approve a sale of the home at the current market price.


 2. UNDERSTAND THE TIMEFRAMES INVOLVED: If you are looking to purchase a short sale you need to be prepared to wait 3 to 6 months. If you need a quick purchase, a short sale may not be for you. In the best scenarios, it will be 2-3 months on average, worst case it could take 3-6 months.

3. GET PRE-APRROVED: It is important for you to not only get pre-qualified, but take the extra step to submit your financials to get pre-approved. A prequailification letter will be needed to submit an offer. Once the short sale is approved, you will only have 30 days to close, so be prepared.

4. HIRE A BUYER BROKER. The first step is then to hire a buyer broker, you can usually do so at no cost to you, they get paid their commission from the fee advertsised in MLS by the listing agent and paid at closing. This way you will have someone assisting you through each step of the buying process. making sure your agent is WELL Expereinced in short sales is a must. Here in NH we can certainly assit you.

5.  ASK IF THE HOUSE IS IN FORECLOSURE: The number one question is if the house is already in foreclosure, If it is, you need to ask if they set a sale date, also know as the auction date. if so, there probabily is not enough time to get a short sale approved.This can save you time and money needlessly spent.

6. ASK AND THEN CONFIRM HOW MANY MORTGAGES THERE ARE: Properties with only one mortgage are alot easier to get a short sale approval. If there are 2 or more mortgages or liens, it will become often one hundred times as hard. You need to make sure your agent pulls a title report to confirm, never take someones word. if you do not have 3-6 months, a short sale with 2 or more mortgages may not be for you.

7. CAN THE SELLER COMPLETE A SHORT SALE: The seller should be quailified for completing a short sale by having a verifiable hardship such as not being able to pay the mortgage, loss of a job, job transfer, illness, divorce or death. Owing more than teh house is worth and getting out of the mortgage is not a hardship in the banks eyes.

8. LISTING PRICE. The listing price is often not set by the bank or even the seller. It should be set at or just under current market value. Some agents will price the home artificially low which often leads to a counter offer higher than asking price by teh bank or outright denial.

9. MAKING YOUR OFFER: First ask if there are any other offers submitted. Ask if there were any offers accepted that the buyer withdrew. It give shints on how far along in teh process the seller is. Your agent should then gather what the home is worth in todays market and base your offer on that. Make sure you include any work/repairs that need to be completed in your initial offer. the bank will not likely renegotiate after accepting an offer and then you find soemthing in a home inspection. Do not put any deadlines on your offer, the bank will not follow them, the process is what it is, it needs to take it's course. Be prepared to wait 4-8 weeks for the bank to complete this process. They will check to see if the seller is quailifie dto complete a short sale, they will order an appraisal to check the value and then make a decision. 

10. APPROVAL and CLOSING: The first thing is never consider the short sale approved unless in writing from the bank and signed by the bank and seller. Be prepared to close within 30 days of getting this approval. make sure you complete a walkthrough before closing. All occupants/tenants/owners should vacate the home. Make sure those items include din your contract are remaining in the house. Once you close, it is your problem so do not close without a walkthrough.

IN CONCLUSION

If you want to enter the world of short sales, make sure you have the time, energy and are not stressed easily. The number one tip is check for yourself what that house is worth in todays market and use that to base your offer on, do not use the asking price as you do not know if it is the value, too low or too high.



If you are looking to buy or sell a home in New Hampshire, please call us first. We strive to provide the best in personal and professional service through each step of the buying and selling process.